Specialist travel firms have reported modest bookings growth in comparison with the sales “boom” seen post-Covid, with passenger numbers down and prices up.
Tour operators and agents gave mixed trading reports on a panel at this year’s Aito Overseas Conference, some of which reflected differences in destination specialisms.
Journey Latin America managing director Sarah Bradley described current market conditions as “tough”, admitting : “It feels a little bit unstable. I would not say the market to our [core] destinations have grown a lot. I don’t think anyone thinks it’s booming.”
She added: “As a region we don’t have any particular issues to limit demand. Revenue-wise we are above pre-pandemic levels and this year is better than last year, and next year is looking better, but not by a country mile.
“It’s fairly modest from the revenue point of view. Passenger numbers are still not back up to pre Covid levels.”
She said the operator was taking bookings from fewer clients, with pressure to service them well in order to retain business.
“If you can get customer loyalty, that is the sweet spot. There are opportunities there but in an uncertain world. You have to find passengers that you can make more money out of,” she said, adding: “The cost of marketing is really increasing, particularly in the digital space.”
By way of contrast, Australia and New Zealand specialist tour operator Anzcro gave an markedly upbeat report on sales, crediting large sporting events in the destinations next year for driving sales.
General manager Andrew Guthrey said new airlift was also likely to boost sales further to Australia and New Zealand.
“It’s pretty positive for us; there are no major barriers [to sales]. It’s getting easier to get there, which historically has been one of the biggest issues, and it should be cheaper by the end of next year,” he said.
Haslemere Travel owner Gemma Antrobus told the panel many Aito agents were no longer experiencing the rush seen post-Covid, which she welcomed as giving businesses some much-needed ‘breathing space’.
“For us, two years after Covid there was a real boom, you could not book holidays fast enough. Many agents have said the same,” she said, adding passenger numbers were down for her agency but those who were booking were willing to spend more.
She noted: “It’s still busy but it’s given us time to reflect on business and how we can improve our business. It’s not been flooding in like it was post pandemic.”
She reported a rise in family enquiries for multicentre trips and predicted more clients would try to put holidays together themselves.
Roy Barker, director of customer data and insights company Spike, said research showed the 55 to 74 year olds were the most affluent in the market and insisted price hikes were not denting demand among Aito customers.
“We think there is an opportunity for prices to go up further as businesses focus more on clients who are willing to pay more for a better experience. They are not price comparing. There is confidence in the market. It looks good from where we are sitting,” he said.