Cost of living crisis 'yet to impact' Abercrombie & Kent

Speaking on a panel at the TTG Luxury Travel Summit, Kerry Golds, chief tour operating officer at Abercrombie & Kent, said the luxury operator was yet to see the effects of the ongoing cost of living crisis, citing a 30% increase in average booking values in 2022. However she anticipated that the crisis “will have an impact.” She added: “I think we all have to look at our value propositions versus our price.” 

When asked about rising air fares across the sector, Qatar Airways UK and Ireland regional manager Gary Kershaw said for most airlines fuel represented around 40% of their bills, and said rising prices were “largely down to supply and demand.” He added: “My personal take is that I don’t think it’s sustainable and we will see a rebalance [in pricing]."

Silversea Cruises UK, Ireland, Middle East and Africa managing director Peter Shanks urged the audience to “focus on the long-term” and developing their products. He stressed that so many external factors were out of the industry’s control, such as exchange rates and government policies. “Holidays are the last thing people want to give up. There will be an impact in the short term, but we remain confident and look to the long term,” he added. 

The panel agreed that the pandemic made travel more precious to consumers, who were willing to spend more and upgrade. Shanks said there has been a “step change in people’s eyes being opened to what’s available to them around the world.” He said Silversea guests are booking longer itineraries, combining multiple itineraries and booking grand voyages. “They want to go further afield and do their bucket lists. We’re seeing a real uplift, and people are prepared to pay the price.” 

However Kershaw said he was “acutely aware that the bubble will burst.” 

The panel highlighted the loss of talent within the industry due to the pandemic, agreeing that many talented individuals chose not to return to the sector. Kershaw added: “We have to find a way to entice people back. It’s about selling a dream.”

To encourage newcomers into the industry, Abercrombie & Kent has re-introduced its graduate training scheme, recruiting 15 individuals four weeks ago, who Golds said have ‘brought a huge energy to the company.”