Nearly a quarter of respondents to TTG’s latest Travel Agent Tracker survey (23%) said price increases were among the main issues affecting their businesses. This is up from 18% in February and 16% in January with price now ranking as the fifth most pressing issue tracked.
Discounting remains common among around 75% of Tracker respondents, with the majority of those who are discounting – approximately 60% – doing so by between 1-5%. Around 80% of respondents to the latest survey said they had been asked to price match in March.
“I’m pleased sales are growing, but I am having to cut margin to compete,” said one respondent. “Clients are returning to their old ways, opting for online operators or those suppliers who provided appalling service during the pandemic. This is a concern for me.”
Another said: “Price seems to be the main concern for most potential customers. If you can’t price-match with the big companies advertising on TV, they are not interested.”
There was, though, another small increase in the number of Tracker respondents reporting average sales prices in higher pricing bands with 9% of respondents stating their average sales price in March was in excess of £5,000 per person, up from 2% in February.
Getting hold of suppliers now tops the list of agents’ biggest concerns, slightly ahead of destination-specific Covid rules and levels of Covid-related admin. However, all three issues were flagged by a lower number of respondents in March compared with February, broadly suggesting the business of selling travel is slowly edging back towards normality.
The number of respondents reporting zero amends or rebookings rebounded by five percentage points month-on-month from 16% in February to 21% in March, returning to the level in January. “Things are getting better, but we are not out of the woods yet,” said one respondent.
Another added: “I’m feeling a bit more positive... but it’s still hard work reassuring some clients that travel is back.”