Seven trends that have defined travel selling in 2023 so far

Most operators now expect their sales to at least reach 2019 levels within the next 12 months. “There is definitely more optimism in the sector than a few months ago which is great to see,” said PwC’s David Trunkfield.

TTG has taken a more in-depth look at the survey’s findings, and some of those from PwC’s corresponding consumer survey, and identified seven trends that have characterised travel sales so far this year.

Is the price right?

The survey found that luxury and high-end holidays are seeing the highest demand, while growth is more restrained at the “value end” of the market. “High income groups are more resilient financially due to savings and incomes keeping up with inflation better,” said Trunkfield

However, despite holiday prices rising – often “significantly” – this year, most consumers seem willing to pay more for their breaks than they did last year, with 80% of operators saying clients are accepting higher inflation-driven prices.

Margin calls

Having said that, operators are not necessarily passing on the full impact of higher costs in their prices, with margins not rising as quickly as prices, although most travel firms are expecting to achieve both higher revenue (85%) and profit (73%) in 2023 compared with last year.

“When asked what the biggest barriers are to travel getting back to normal, the key ones are around consumer finances – holiday costs going up and concern over finances,” said PwC’s Rick Jones.

Staff shortages

Staffing pressures also remain a concern for the trade with increasing demand likely to exacerbate this problem, while businesses are looking to tackle inflation by investing in technology to improve efficiency alongside other cost-saving initiatives.

Strong holiday intent

The accompanying survey of 2,000 UK residents also paints a positive picture for the travel trade, with consumers determined to go on holiday this year – 75% are planning to spend the same or more on trips than last year.

Generational divides

“Older age groups are expecting to spend more this year,” said PwC’s Eleanor Scott. “That might tie in to the fact that younger age groups returned to travelling earlier post-Covid and were also likely to have spent more on travel in 2022.”

Leaving it late?

The survey also points to more of an early booking pattern in 2023, with fewer holidaymakers planning to leave it late for this summer. Those waiting to book are mainly doing so in the hope that prices will come down as summer approaches or are still saving up for their holiday.

Travel worries linger

Last year’s travel disruption, including flight cancellations and airport delays, is still having an impact on some consumers, with a “stubborn” 20% of people worried about travelling internationally and “proving hard” to entice back to the market.

What are the biggest barriers to travel for consumers?

• 53% – cost of holidays going up
• 47% – concerns over household finances
• 22% – weakness of the pound; flight cancellation concerns; concerns over airport delays