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Hays IG members urged to avoid discounting

Hays Travel Independence Group (IG) members have been urged to make sure they are controlling discounting and focusing on growing their margins.

Hays Travel chief operating officer Jonathon Woodall-Johnston encouraged business owners to recognise the added value that agents offer and cautioned against attempts to beat online rivals on price.

“We don’t need to go in with the best price,” said Woodall-Johnston, adding: “We’re very good at customer service and we’re investing in it, so why wouldn’t customers want to buy with somebody they can trust?”

The message was shared during the Hays IG domestic conference in Leeds.

Around 130 delegates heard that IG members had grown their passenger numbers by 15.80% year on year, based on the period May 1, 2023 – February 29, 2024.

Gross sales for the period rose by 22.25% year on year, while profits increased by 21.70%.

Woodall-Johnston encouraged members to emphasise their expertise and the value they bring to customers, but added that it was also important to “get the product mix right”.

He recommended products that offer a higher profit per passenger, with cruise being among the sectors picked out.

IG members have grown their proportion of cruise sales to nearly 17%, but that share lags behind the proportion seen across Hays’ retail division (25.29%). The company wants cruise sales to represent 33% of its overall business.

Woodall-Johnston highlighted the potential for Sunday bookings and also recommended that agents sell ancillaries and insurance at the point of booking.

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