UK industry ‘very resilient’ despite financial uncertainty, says Tui UK boss

The UK industry remains “very resilient” despite financial concerns ahead of November’s Budget and increased capacity across the market, according to Tui’s UK boss.

 

“The great news is that our industry is very resilient. It’s a great place to be – holidays – because people want to book travel,” said Neil Swanson, Tui UK & Ireland managing director.

 

However, he noted: “People are waiting a bit later [to book]. It is a bit more uncertain, so they are waiting later.”

 

He told a Travel Weekly webcast the market is “very competitive” with “big capacity increases” alongside financial uncertainty ahead of the Budget at the end of November.

 

“The prices might come down in that period. There is a lot about how you hold your nerve on prices,” he said during the webcast at Abta’s Travel Convention in Majorca.

 

“Ultimately, people need to sell, need to fill the beds. Ideally, we want that happening earlier, but people will book when they’re ready to book. We can encourage them all we want to,” he said.

 

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He noted rising business costs over the past year, with elements such as national insurance, minimum wage and SAF [sustainable aviation fuel] but commented: “I’m hopeful that we won’t see anything happening there [in the Budget].

 

“I still believe, underlying it all, that it will take a lot for people to give up their travel – maybe they’ll modify and go for shorter lengths or different board basis but, ultimately, they will still want to do it.”

He described Tui’s capacity increase of 2% as “modest”, adding: “I think we can do that.”

 

“The key piece at our disposal is around the quality of the product, and if you know that’s what you want, then you’ve got a better chance of getting what you want early,” he said.

 

“Also, people can manage their budgets…a lot of the market now offers direct debit options where you can spread the cost.

 

“But, ultimately, if someone doesn’t want to book until January, the chances of getting them to book in the previous August are tough.”

 

However, he continued: “The summer holiday peak is still massive. The January booking peak, I can promise you, will still be absolutely massive.

 

“That’s part of the tradition of ‘you’re finished with Christmas then I want to book a holiday’ and long may that continue.”

 

• Swanson also commented on a protest during the convention with animal rights campaigners urging the Tui group to stop selling tickets for marine parks.

 

“It is an incredibly sensitive issue, and I understand that it is very important to a lot of people,” he said.

 

“Everyone has got the right to say what they are thinking about and…we do take it seriously.

 

“We only work with marine parks who we audit regularly. They need to adhere to global welfare guidance for animals…and if they don’t, then we don’t work with them.

 

“We are keeping that under constant review and seeing how things develop.”