Travel Trade Consultancy director Martin Alcock told Aito conference delegates on Friday (25 November) not all consumers had been impacted equally by Covid during a session entitled Today’s Commercial World.
“Wealthy individuals are immune from [the financial crisis] but there’s a group asking the question, ’we can afford it – but should we be spending the money?’," said Alcock, speaking at the conference in Portugal’s Braga.
Claire Oliver, managing director of Luxury Dream Holidays, shared her worries about consumer confidence with fellow delegates. “The higher market is still buoyant but the middle market is a concern – they’re thinking we can afford it, but should we?”
Sara Zimmerman, chief executive of Travel Department, agreed: “Our customer base is older and more cautious," she said. "I fear that [mindset] will be more prevalent into the new year, if everyone is saving money, should we be splashing out cash."
Another concern was how to make up for the two to three years of dwindling new customer bases, owing to the pandemic, with panellists discussing how to meet these challenges head-on.
Julie Lo Bue-Said, chief executive of the Advantage Travel Partnership, advised delegates to focus on their business plans and to stay in the market to take advantage when opportunities came around. “Stay focused on what is controllable," she said. "Don’t get distracted and worry about what you have no control over.”
Lo Bue-Said added: “You’ve got to be everywhere. You can’t avoid a particular channel because you’ve never been in that channel. Embrace technology to complement human interaction.”
’Demand still there’
Alcock’s fellow TTC director, Adam Pennyfather, said now was the best time to invest in technology. “The best businesses we’ve seen have invested across the business," he advised. "Tech brings more operational efficiencies, allowing you to scale up quickly and reach markets.”
Friday’s panellists also cautioned against travel "talking itself into a recession" with several delegates reflecting on consumers’ desire to spend and travel, despite the economic situation.
Sunvil managing director Chris Wright said: “Demand is still there, and people are still paying the prices. We’re not sure for how long, and we are seeing trade-offs, for example, swapping business class for economy.”
Westway Travel managing director Ian Prior added: “There needs to be positivity and that’s what worries me if you let it [the downturn] get on top off you. We know our market is wealthy and still spending.”
