Trade welcomes Middle East peace deal as boost to consumer confidence

The trade has welcomed reports of a Middle East peace deal but cautioned the news was unlikely to trigger an immediate sales surge.

 

Industry figures were speaking just before the Foreign Office officially relaxed its travel guidance for the Gulf region, expressing optimism that the geopolitical breakthrough would boost consumer confidence to travel, particularly to the United Arab Emirates, at a time when the family market was picking up for this summer.

 

Premier Travel managing director Paul Waters anticipated fewer cancellations and deferrals.

 

“In the immediate term, the biggest impact is likely to be a reduction in hesitation rather than a significant spike in sales. Late bookers should feel more confident to commit,” he said, but noted: “The real benefit is likely to be felt more strongly in late summer and autumn as consumer confidence rebuilds.”

 

More: Qatar Airways expands UK and Ireland summer flight schedule

 

Hays Travel reported “welcome signs” of a peace agreement were already “translating into customers feeling more confident travelling further afield”.

 

Chief operating officer Jonathon Woodall-Johnston said: “In recent weeks we’ve seen growing momentum in our long-haul sales, including to the US – driven in part by the World Cup and positive feedback from fans in host cities.

 

“If peace holds, we expect to see the UAE bounce back strongly, as well as travel to onward destinations.”

 

Travel Chaps has begun to interview for new staff in anticipation of increased enquiries. “This news will open the gates to the new clients who have been holding their breath before contacting us,” said co-owner Ashley Phillips.

 

“If peace holds, we expect to see the UAE bounce back strongly, as well as travel to onward destinations.”

 

Travel By Hannah director Hannah Porter added: “We’ve noticed clients feeling reassured about travelling. The timing is welcome as many families are finalising their summer arrangements.”

 

Shevaun Joy, director of agency Destination, said: “This is going to help stabilise sales and existing bookings to the Middle East and further afield, as well as transit bookings.” She noted there was already a “buzz” in the agency’s shops with clients looking for summer and autumn breaks.

 

Idle Travel owner Tony Mann said the news came just as the agency enjoyed a revival in summer family sales, with a “significant number” booking in the past six weeks.

 

But he stressed the deal alone was unlikely to lead to a bookings surge, adding: “What will boost the family market [further] is bad weather [in the UK] or prices – not rock-bottom, but more-reasonable prices.”

 

Sales for this summer account for 72% of The Travel Network Group (TTNG) members’ bookings, up seven percentage points year on year, and for more than 65% of Advantage Travel Partnership members’ bookings last week.

 

TTNG commercial director Katharina Peck said: “The timing is helpful as we move into peak booking and travel periods; we’d expect this to support continued demand rather than act as a single trigger.”

 

Family sales make up more than 50% of current sales for TTNG, representing a “significant uplift both week on week and year on year”, while Advantage family sales were up 10% last week on the previous week.

 

Advantage commercial director John Sullivan said the news would boost cruise sales “in particular”, adding: “We are ready to support the expected pent-up demand for destinations across the Middle East and beyond.”