Hays Travel Independence Group members have been urged to reduce discounting to further improve a strong rebound which has seen the group outperform the wider business.
Speaking at the IG conference at the Forest of Arden Resort on Monday, head of IG Natasha Marson said members should “not sell themselves short”, adding: “Trust is high so I would be holding my nerve as there is an opportunity to reduce discounting and improve margins.”
Average booking value for IG members in the past five months peaked at £2,829 in July and was £2,782 in August, with an average margin of 9%.
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Marson said the Independence Group continued to grow, with more than 40% of members having been within the consortium for over 10 years, but recruitment efforts being reflected in the fact that 34% of members joined within the last five years.
New members since the group’s overseas conference in March include Club Voyages, Picniq Holidays and Refined Travel.
Jonathon Woodall-Johnston, Hays Travel chief operating officer, said the Independence Group had outperformed its budgets for the past five months, including September despite the challenges of “events outside our control”.
He also said IG members had outperformed Hays’ retail business on commission versus budget during the same period, although both have exceeded their targets throughout.
Woodall-Johnston confirmed Hays had returned a contingency Covid loan to Barclays Bank earlier this year, meaning the agency had remained debt-free for 42 years.
And he also confirmed it continued to ring-fence customer cash, meaning no consumer money is used to fund holidays.
Both divisions continue to attract new customers, with 45% of retail customers new to the brand, rising to 49% for IG members, Woodall-Johnston said.
Key areas of focus for both the retail and IG business included growth in cruise and forex sales.
More: Agents told to avoid short-term focus in peaks
Combining new technology with ‘human touchpoints’ key to Hays’ future