Tour operators have reported increasingly positive sales levels with one even predicting growth during economic recession.
But Elegant Resorts managing director Lisa Fitzell, admitted it could “be a different story after Christmas” as people start to feel the “pinch” as disposable income is squeezed.
Chancellor Jeremy Hunt told the nation yesterday that the economy was shrinking as he set out £55 billion of tax hikes and spending cuts in his autumn statement branded by Advantage Travel Partnership chief executive Julia Lo Bue-Said as “underwhelming and disappointing”.
The Office for Budget Responsibility warned that household income will fall by 7% over the next 18 months.
In an economic forecast to accompany the autumn statement, the OBR said high inflation and rising interest rates will lead to consumers spending less, tipping the UK economy into a recession “lasting just over a year”.
More: UK travellers to spend more than other Europeans on holidays in 2023
Abta report tips all-inclusive bookings to rise in 2023
Speaking at the Abta’s Travel Trends conference in London, Ant Stone, G Adventures director of marketing EMEA, revealed the adventure travel specialist grew during the last global economic crisis in 2008 as he shared the company’s outlook for 2023.
Stone told delegates: “We grew in the last recession and we’re anticipating growth through this one that is because customer habits are changing.
“We consider ourselves to be in a good place as that new demand is coming through.”
He confirmed the operator considered itself to be “in peaks” right now. “Black Friday is one of the peaks for us so we just try to keep messaging clear and simple,” he said.
Fitzell confirmed the luxury tour operator was surpassing 2019 levels in terms of bookings “every single week”.
“We’ve not really seen the pinch yet – we’re making up for lost time,” she said.
But she warned: “I do think that it will be a different story after Christmas.”
Fitzell said customers were generally “upgrading” throughout the year, but admitted spending had “stabilised a little bit”.
Nicolas Bresch, Club Med managing director, UK & Nordics, noted the impact of ‘revenge travel’ as people looked to get away this year after being locked down during the pandemic.
“The demand for premium and luxury [holidays] is increasing a lot,” he added. “The demand from customers for peace of mind is really strong. That is why all-inclusive is so in demand at the moment.
“We’ve just published our latest ski report and all-inclusive accommodation is becoming the preferred accommodation over chalets.”
Bresch said Club Med was “not concerned” about the cost-of-living crisis because skiers “absolutely love skiing”.
“Demand is really strong from all markets apart from Asia,” he explained.
On energy costs in resorts, he said: “It’s fair to say that energy costs have impacted the cost of the holiday but we have agreed contracts with energy providers for several years, compared with energy costs in the UK, it is still cheaper to run our resorts.”
More: UK travellers to spend more than other Europeans on holidays in 2023