Trade optimistic for summer — but stats show less people have booked than this time last year...

Amid soaring mortgage costs and stubborn rates of inflation, clients have not been deterred from splashing their Covid savings on trips abroad after two three of disrupted travel plans, with Nationwide’s latest consumer spending report suggesting consumers will “throw caution to the wind” and spend nearly £1,500pp on holidays this year.

Nicki Tempest-Mitchell, Barrhead Travel sales and marketing director, told TTG’s Agenda 2023 Summer Breakfast on Tuesday (20 June) the Scottish agency had experienced a “phenomenal” start to the year. “Since January, we have been trading at record breaking levels,” she told delegates.

This, she said, had been driven, by an uptick in premium touring bookings to destinations such as Canada, as well as package holidays and cruise getaways. Tempest-Mitchell was echoed by Aito head of commercial Bharat Gadhoke, who said the premium end of the market had been “absolutely flying” since travel’s post-pandemic restart.

However, Elman Wall managing director Jonathon Wall warned challenges such as the current economic climate and ongoing supply chain issues still loomed large for travel, despite the strong start to the year. “We can only go upwards after years of diminished business,” he said. “But there are still issues around economic uncertainty and the supply chain.”

Tempest-Mitchell said this was why it was value that was continuing to drive sales. “All-inclusive breaks are performing very well as people are looking for good value trips, but long-haul is the last sector to get going, driven by capacity issues,” she explained.

The threat facing the long-haul market, Gadhoke believes, is price. “Right now we are seeing customers swallow the extra costs – but when will this stop?” he mused.

Despite travel edging towards a positive summer, Wall urged the industry to err on the side of caution when it comes to lates. “It may or may not happen,” he said. “There’s always uncertainty around lates – you don’t know for sure if customers will go for it or not.”

However, Tempest-Mitchell explained how Barrhead had, so far, not seen the usual drop off in bookings at the start of the 2023 summer season.