Vertical Travel Group reports strong sales year but softer peaks

The Vertical Travel Group has reported “a lot of unsold capacity in the market” among tour operators and cruise lines.

Peter Healey, group chief executive, said: “We are seeing a lot of capacity across all tour operators, and I thought cruise lines would be better sold. There is still quite a lot to sell. We’ve seen a pattern over the past few years of peaks being less peaky.”

He said bookings for the group’s financial year to the end of April had been “really strong”, adding: “We had a tremendous and strong first three quarters. What’s gone on since has meant it’s become more difficult. April has been all right. Although sales have held up, margins are more of a challenge.”

Sales for the year ended 6% up year on year, compared with 17% up reported at last October’s conference.

Healey said the conference aimed to help the group’s homeworkers “keep their confidence” and not necessarily give up margins to secure a booking.

“We are also having a conversation about what is positive in the market,” Healey said. 

“There is a sector – experiential, high-end cruise, large family groups – that is doing really quite well. Bread‑and-butter stuff is a struggle. 

“I’m hopeful that bookings which were slow to come will come now, as we get to this late-booking season.”

He said high summer prices in European hotels post-Covid had prompted more holidaymakers to travel in shoulder seasons, adding: “And we’re seeing people going more long-haul, moving from high-end, expensive places in Greece to places in Barbados in June and July.”

The beginning of the new financial year also saw the official merging of the legal entities of Vertical’s homeworking brands, announced at October’s conference in Spain.

“We are trying to seduce the homeworkers to come behind the Vertical Travel Group, but a lot of them have their own brands so there’s no pressure on that,” said Healey. 

“We’re happy for them to do that, but it will mean we all move to one Abta number across the group. That means much better visibility.

“We are going to be talking outwards about the Vertical Travel Group more, and less about the individual brands, and making the Vertical teams work more as a team across the group.”

Systems for a new cruise division, also announced in October, are being completed, he added, ahead of the recruitment of cruise specialists.

“Cruise continues to be a big part of what we do [but it] is still only about 18% of that. We should be nearly 30%,” he said.