Agents, AI and anniversaries – and that’s just the As. There’s a lot to discuss when TTG sits down with Holiday Extras chief Matthew Pack at the firm’s HQ in the Kent countryside.
Founded in 1983 by his father, Gerry, Holiday Extras has come a long way from telephone bookings and handwritten paper receipts, with its plans to double in size in the coming years set to be heavily dependent on technology.
Its fortunes, though, will rest on several other constants – most notably people’s unwillingness to give up their holidays despite the cost of living squeeze, and the company’s unwavering faith in travel agents and trade distribution.
“People still want to go on holiday, they still want to stay in hotels and have a good time – that’s consistent,” says Pack, who took over from his father as group chief executive in 2015. “But from a technology point of view, how we do business and how we work is completely different.”
Technology is a huge focus for Pack and Holiday Extras, so much so the firm’s Westenhanger HQ resembles that of a Silicon Valley start-up rather than a traditional British family business.
Split across two buildings, the base has a TV studio while the offices are – for the most part – open plan to foster collaboration. “We’ve been pretty clear on the fact we want teams of people working together,” Pack explains.
Despite the lean Covid years, Holiday Extras – which this year celebrates its 40th anniversary – has already returned to profit. In fact, the company is now two to three times larger than it was pre-pandemic, Pack tells me, although he plays down rumours of an imminent market floatation following national press reports.
Key to this growth has been a renewed focus on its breaks programme which, first launched 20 years ago, allowed Holiday Extras to capitalise during the pandemic on demand for UK short breaks.
And while extras such as airport parking and lounge access remain the firm’s forte, the breaks division, Pack reveals, is on course to constitute between a quarter and a third of the firm’s total revenue by 2028.
Sale of commissionable extras is a more than handy earner for agents too, who make more than a million reservations with Holiday Extras a year. “There’s a real focus on partnering with travel agents because they’re still a mainstay of our organisation,” he tells TTG.
Pack hails his devoted agency sales team’s partnership approach, with retail managers out in the field north and south “day in, day out”.
“Their sole job is to visit these agents, and pick up the phone if those agents aren’t making a reservation – or if there’s an issue,” he says.
Holiday Extras believes in agents, but while the internet – despite predictions to the contrary – failed to wipe out travel agents as we know and love them, Pack advises agents to embrace new technologies like AI and machine learning if they are to ride out another technological revolution.
“If the travel agent is able to use AI, and be a power user of it, then there is a real opportunity,” reasons Pack. “Where AI is heading is pretty exciting. I just sent a memo to the entire organisation saying they will all have access to these technologies and tools.
"This is a fantastic moment in history if we embrace it and go for it by making sure everyone that has a pen or pencil has access to AI.”
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