Travel agents offering direct debit payment schemes have reported a marked increase in demand as they admit to being “astonished” by another record sales week.
Firms attributed pressure on household spending for encouraging consumers to spread the holiday cost through instalments.
Idle Travel director Tony Mann said monthly direct debit schemes had become increasingly popular in the past few years.
“More customers have asked this month if we will let them pay monthly. We’re not doing it for [extra] cashflow, but because people want us to do it and it gives them a way to budget for their holiday,” he said.
Barrhead Travel and Hays Travel North West, which both had senior staff working on the shop floor over the busy weekend, reported a similar trend.
Nicki Tempest-Mitchell, sales and marketing director at Barrhead, which reported its “best-ever sales day” over the weekend, said: “We’ve spotted an uptick in demand for flexible payment options.
“Breaking [holiday costs] down to manageable monthly payments is helping to stimulate demand.”
Hays Travel North West said Saturday was one of its busiest days of the year so far, and that its 47 branches had seen a “significant increase” in direct debit monthly payments compared with previous Januaries.
“It’s a combination of the customer being aware of the option and our staff proactively offering it,” said managing director Don Bircham.
“The direct debit [option] has been one of our key focus areas.” Independent Travel Experts managing director Gary Gillespie agreed: “We have definitely noticed an increase in the number of requests to set up a regular payment scheme to spread the cost of the holiday.”
The Travel House said it was running a new staff incentive to boost the number of customers using its direct debit scheme.
“If staff get a customer to sign up to a direct debit, book insurance and an ancillary, and if the profit margin reaches a certain threshold, they will get a bonus the following month,” said head of retail Leanne Williams.
“Once customers commit to a direct debit they are less likely to cancel. And if the flight were to get cancelled, for example, they would be more inclined to transfer.”
The strength of January sales continued to surprise agents and spurred optimism for February.
Mann said: “We’ve taken in January what we took in three months in 2019. I’m astonished.”
He attributed the “exceptional weekend” to clients receiving end-ofmonth pay packets, adding: “Now we’re hoping for a fabulous February.”
Miles Morgan Travel recorded the best sales day in its history on Friday, January 27. “I’m expecting it to carry on like this in February,” said chairman Miles Morgan, who added late bookings for the next three months were now being replaced by sales for this summer and beyond.
Agents also credited low deposits for helping to drive bookings. InteleTravel UK director Tricia Handley-Hughes said January revenue was 33% up on January 2022, with booking values up 22%.
“Low deposits are definitely enticing customers,” she said.
“People are spending more on their holidays and booking earlier.”
The Advantage Travel Partnership revealed revenue last week was up 48% and bookings up 82% year on year.
Chief commercial officer Kelly Cookes said: “The booking growth was the largest we have seen so far, so sales show no sign of slowing down. The momentum seems to be continuing to grow.”