After a spectacular start to the year for the travel industry, agents are now gearing up for what is likely to be the busiest summer since 2019 with consumers continuing to prioritise spending on travel above all other areas of discretionary outgoings.
More than three years since the start of the Covid-19 pandemic, the industry can just about (touch wood) safely say it is finally back doing what it does best – sending people on holiday.
Recent data from Barclays and Nationwide showed spending on holidays and travel continues to see year-on-year growth as customers continue to prioritise trips abroad despite financial pressures caused by the cost of living.
"We are amazingly busy at the moment – it’s crazy," founder and director of Newport’s La Vida Travel Karen Marin Reyes told TTG. "Consumers are very confident with their travel spending – which is great."
Reyes’ comments were echoed by 2023 TTG Top 50 UK & Ireland No.1 agency Beverley Travel, with director and co-owner Kelly Cheesman describing how customers are "making sure they have something to look forward to" after years of Covid upheaval.
So ahead of the summer, TTG has spoken to five agents, who identified six key trends likely to characterise both trading and people’s travel plans during peak season.
Despite Brits being able to travel (reasonably) uninterrupted for the best part of a year, customers are still looking to plunge their Covid savings on a trip of a lifetime. "Customers want to spend all of their money before they pass away, as they have a lot of bucket-list trips they want to do," Hays Travel Bexleyheath branch manager Katrina Pike explained. "Our average booking value has increased," echoed Oasis Travel managing director Sandra Corkin. "We're definitely seeing more luxury business coming in, which is really great."
Although big-ticket bookings are still coming in, consumers are now armed with strict budgets when booking a trip, spurred on by the cost of living crisis tightening Brits' finances. "I think families are struggling a little bit, they are changing what they would normally do," explained Thorne Travel director Shona Thorne. "Those who would normally go for 14 nights are now looking at seven nights or different airports," she added. "They’re coming in with a budget and saying 'what can I get?' – which is very different from normal."
Multigenerational families are opting to take longer trips abroad as a group, making up for lost time during the pandemic. "The pandemic itself has changed lots of people's priorities, they care more about experiences and spending time with each other," Cheesman said. "People are travelling further, and a lot of the time it's families, multigenerational or big groups of friends," added Reyes. "We've done lots of stags and hens recently."
In line with new experiences and big-ticket bookings seeing a bounce, more and more consumers are also opting for holidays at sea for the first time. "We have noticed a lot more people looking into cruising, especially river cruises," Pike said. Meanwhile, Cheesman reported an uptick in first-time cruisers while Reyes detailed how a £13,000 suite booking led to an additional £22,000 cruise booking.
Agents also reported an uptick in couples looking to spend more on a romantic getaway this summer. "It has been predominantly couples for us recently, which is a bit of a change," explained Throne. "Couples are spending a lot more, and our average spend has been up. They are still quite happy to spend, as they are not experiencing the same financial restraints as families perhaps."
Clients are also opting for more than one trip in 2023, Corkin said, booking extra holidays just a few months out. "They're coming in and booking trips for a few months ahead, and then planning their next trip after that as well," she added. "There's definitely excitement and appreciation from our customers that they are able to travel and they want to do it properly."
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