Agents remain largely bullish about soaring inflation and sky‑high energy bills, saying bookings are buoyant and they can capitalise on higher prices.
Energy regulator Ofgem said the price cap for households will rise by 80% in October but, unlike for consumers, there is no cap for commercial energy bills.
Nevertheless, Gemma Antrobus, owner of Haslemere Travel and chair of Aito Agents, said businesses that had pared back costs during the pandemic “should be OK”.
More: Cost of living now having ‘major impact’ on holiday choices
Cost-of-living impact insight to be presented at Abta’s Travel Convention
“Those who have been leaner – keeping costs down – will weather the storm better,” she said.
“If you are maximising this amazing demand and not discounting, you should be making more money than before Covid as prices are higher.”
Bharat Gadhoke, Aito’s head of commercial, said the cost-of-living increase would “undoubtedly bite” but destinations such as Japan, Australia and New Zealand were now back on sale and consumers were still likely to prioritise holiday spending.
Aito and other organisations such as Abta and The Advantage Travel Partnership are enabling members to spread the cost of their subscription fees this year to help with cashflow.
Danny Waine, Abta’s head of membership, said: “We are acutely aware that members are heading into the cost-of-living crisis after the worst two years of trade.”
The association will continue lobbying when the new prime minister is appointed, calling for business rates support to be extended and for financial packages, especially for SMEs and independent traders.
Abta LifeLine, which helps members facing hardship, has seen applications rise, although not currently at levels seen during the Thomas Cook collapse or onset of the pandemic. However, director Trudie Clements said: “It’s clear we’re going to see an awful lot more.”
Premier Travel director Paul Waters said the chain was monitoring its spending, adding: “We are speaking to our teams about partners who offer higher levels of commissions and suppliers that The Travel Network Group highlights as offering additional overrides.”
He said staff were also striving to cut costs by preventing draughts, installing more-economical heaters and turning off unused equipment.
Ashley Quint, travel agent at TravelTime World, is seeking to turn a negative into a positive with a campaign called ‘The Heat Is On’.
His marketing highlights costs per day for long-stay winter-sun holidays to encourage people to head overseas and avoid high bills in the UK.
TravelTime World moved into smaller premises in January 2020, cutting costs such as rates and its lease.
Homeworking group InteleTravel said its agents benefited from low overheads – they pay £32 a month to the group – and transactions in August were up 21% year on year.
Advantage Travel Partnership chief commercial officer Kelly Cookes also reported strong sales, with 46% of bookings for departures within 12 weeks.
She said there were some “rumblings” about the cost of living over the bank holiday but highlighted how the consortium can support members with webinars on issues such as cashflow, and HR and legal support.
The Personal Travel Consultants in Partnership with Blue Bay Travel reported “really strong” sales in August and sales manager Abbie Heaton commented: “Some of our top sellers have achieved record-breaking sales of £300,000 each for August.”
Alistair Rowland, chief executive for Blue Bay Travel, added: “The rising cost of energy and other bills is a concern for the travel industry because of the potential impact on bookings this winter, as customers are forced to tighten their belts, and because it will increase the running costs for individual travel businesses.
“Overall, Blue Bay Travel is trading well, significantly up on 2019 levels, which puts us in a strong position to weather the storm.”
Samantha Bruton, GoCruise & Travel head of franchise, said August was the best month of the year so far but cost-of-living pressures could slow sales for winter 2023-24.
More: Cost of living now having ‘major impact’ on holiday choices
Cost-of-living impact insight to be presented at Abta’s Travel Convention