Trading in the last week of December was “challenging” for a number of agents, although sales are picking up for January.
Several agents told TTG they had experienced lower-than-anticipated footfall, enquiries and sales in the run-up to the new year.
Andrew Earle, owner of Yorkshire’s Andrew Earle’s Holidays, said his agencies had “not bagged as many [bookings and enquiries] as we usually have at this stage”, but insisted he still expected to hit sales targets for January and February. He cited a softening in demand for its specialist area, the US, blaming currency uncertainty and traveller discontent with President Donald Trump for fuelling the drop-off.
Richard Dixon, director at Holidaysplease, said he had been “surprised” by the trading environment over the festive period.
“It’s not a dramatic fall-off, but we’ve had to work harder to generate enquiries than previously,” he said. “It’s not a total desert, but the market needs a prod. I’m not sure there is one specific reason – perhaps travel has not been on consumers’ minds.
“The volume was down a little bit between Christmas and New Year, but conversion has been good and is up on last year.”
Steve Philippou, sales director at Cardiff-based Cartwright Travel and Passion for Cruises, agreed business had been slower during the period, and suggested it was due to consumers “bolting on extra days off” and perhaps staying at home between Christmas and New Year.
All three agents said they were optimistic of an improvement in conditions however, with Earle referencing “lots of demand” for 2019, with families choosing to save up and travel further in the future.
Dixon said: “We’re expecting January to pick up and trading on Tuesday [January 2] was strong.”
Cartwright added that the agency’s first day of new year trading on January 2 “felt like the whole of December combined”, and he predicted that countrywide bad weather could aid sales further.
Vim Vithaldas, group finance and commercial director at The Travel Network Group, also said that following a quieter-than-usual period for members, “things have picked up”. “Now they are trading broadly in line with last year… sales to the Mediterranean seem to be particularly strong at this early stage,” he said.
And Kirsten Hughes, UK managing director for Travel Counsellors, which reported an 18% increase in December sales – with almost a 25% rise coming in the last fortnight – added: “Judging by the volume of enquiries, we expect this trend to continue into the January period as we prepare for a record-breaking month.”
South London’s Travel Designers also reported a strong December finish – “more than 90% up” year-on-year for the month.