Value looks set to be the key priority for travellers booking for summer 2023 this winter, with some agents already seeing people trade mainstream favourites for up-and-coming destinations.
Others revealed clients were seeking more detailed break downs of costings, with price increases in some cases negating the benefit of booking early – a trend highlighted by TTG’s Travel Agent Tracker in September.
However, agents remain hopeful that confidence consumer confidence will rebound in the new year, while rising interest rates could stimulate holiday demand among savers, whose cash will go further this winter.
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"I don’t think the peak January sales are such a big thing any more,” said Thorne Travel owner Shona Thorne. "I think we might see a steady – rather than massive – peak.
"There is a lot of uncertainty about with the cost of living crisis. People are worried about job security and energy bills, and there is a lot of scaremongering about too."
A "significant number" of Thorne customers are booking for summer 2024, rather than 2023, she revealed, while sales of cruise packages, all-inclusives and group holidays are on the rise.
Carolyn Park, director of West Country agency C The World, said long-haul trips to Australia and New Zealand were proving popular for summer 2023, particularly among retirement age groups and young professionals.
Park told TTG clients were prioritising value, irrespective of "whether they’re spending a lot, or a little". "They’re asking for break downs and budgets on everything," she added. "That’s not something I’ve seen before."
Diane Coleman, owner of Tickets Travel, said she was still optimistic about new year sales. "I do think January bookings won’t be quite what they used to be, but will go back to being busier. We’re still getting good bookings, and though it has been quieter, I think we will see an upturn in the new year".
The agency has seen an uptick in long-haul bookings, but said bookings to the US are down due to "a real lack of confidence in the stability of the dollar".
Value, value, value
Ashley Quint from Berkhamsted-based agency TravelTime World said he believed "alternative, value for money" destinations would increasingly popular next year, although rocketing prices make it difficult to forecast.
Last year, the business recorded its second-best January ever. Quint, though, said he was unsure whether this would be replicated this year due to the UK’s economic climate.
"I think Slovenia, Montenegro and Croatia are going to replace Greece as the trendy European holiday – prices there have really picked up," Quint said. "People want better value now."
Quint added the war in Ukraine, the cost of living crisis and pricing were factors driving down demand for peaks bookings and stymying consumer confidence. "Prices being quite a bit higher – in the 15 to 20% realm – mean it’s difficult to sell the benefit of booking early," he said.
