In it for the long-haul
Hays Travel chief operating officer Jonathon Woodall-Johnston told delegates the company's aim was to elevate long-haul holidays and have them account for a third of all holiday sales by retail staff as soon as possible. Woodall-Johnston said with many long-haul staples, such as Japan, Australia and Mexico, featuring on British travellers' bucket lists, the time was right to capitalise on this growing trend to generate new business. He revealed long-haul holidays are three times more profitable for Hays than short-haul trips, providing an immediate boost to the company’s finances. “It demonstrates the opportunity we have to work smarter, not necessarily harder," he added.
Cruising into profit
Head of cruise Catriona Parsons, meanwhile, said the agency had seen strong growth in cruise sales, and was seeking more as Hays targets becoming the UK’s leading cruise retailer by 2027 with 400,000 cruise customers per year. She said in October alone, Hays agents grew cruise passenger numbers by 25%, revenue by 26% and profitability by 27% year-on-year. Citing data showing more than a third of the UK population (35%) have expressed an interest in taking a cruise holiday in the next five years, Parsons said Hays would focus on generating more cruise bookings – particularly fly-cruises – by highlighting drinks packages and room grades, and always offering balcony cabins in the first instance. “People are looking for different types of holidays so we need to make sure we are offering that at every opportunity," said Parsons.
Going for groups
Mandy Shillito, managing director of Miles Morgan Travel, which was acquired by Hays Travel earlier this year as founder Miles Morgan bowed out, urged delegates to increase their focus on promoting escorted group travel as a way of driving new sales. She said the brand currently had 20 on sale with a further 12 in the pipeline, with tours ranging from cruises to Lapland adventures. Shillito added these trips were a great way of attracting solo travellers and driving repeat business, both powerful avenues for driving profit.
'With events, everyone wins'
Shillito also took the opportunity to remind agents of the power of customer events. Miles Morgan Travel held 145 across its 19 shops in 2023, which led to increased profits within four weeks of the event. She said the best events focus on new product, or iconic and popular destinations, while working with the biggest brands in travel generated excitement. She said venues should have a good reputation, plenty of nearby car parking, disability access and be flexible to your needs, not to mention affordable and within budget. Marketing, she said, should start six weeks out via a combination of direct e-mailouts, social media and advertising in local community press titles. Shillito said agents should also try to access some exclusive deals for the event and avoid discounting in order to drive strong margins. “With events, without a doubt, everyone wins,” Shillito added. “Events create extra profit that we otherwise would never have taken, and we also engage with new customers through them."
Sunday trading
Further opportunities to drive sales will come as Hays Travel prepares to add to its roster of 161 branches that currently open on Sundays. Head of retail Paula Barrett said Hays head office was working with 110 branches to ensure they have the staff and resources to trade on Sundays in peak booking periods at the very least. Meanwhile, all new branches will open on the premise of working a seven-day week, where appropriate, to generate additional income. “The more branches we open, the more these profits will increase,” Barrett added. “We can generate more cash and new customers, and we are looking beyond increasing margins and commercial deals."
Embracing the web
Woodall-Johnston highlighted the phenomenal power of the Hays Travel website to the business. With Hays planning to drive more long-haul sales through its in-house tour operator Vista, which has an Atol for 160,000 seats over the coming year, Woodall-Johnston said the agency had created a new long-haul area on the Vista website for agents to use. He added there would be further investment in technology over the next 12 months. “77% of customers that go to our website then go into a shop," he said. "The purpose of the website is to generate leads, that’s why we’re investing in technology."
Keeping it local
Hays head of marketing David McNiven laid out plans for a renewed focus on regional marketing. "The more personalisation we do, the better the conversions," he said. McNiven revealed Hays was recruiting for a new regional marketing team, which will divide the UK into five areas, with a full-time expert and support dedicated to each one. Agents will be able to draw on the team's expertise, as well as a new regional marketing budget which will be spent on activities designed to drive sales locally and support local communities. New targeted emails are focusing on offers from local airports previously used by customers, and are proving so successful the click-to-open rate is 5% higher than on standard marketing emails. McNiven said: “There’s a lot of opportunity for us as a business to target our customers in a personalised way, and that means understanding where our customers are and what they want to see."
Rich rewards
Barrett added Hays staff had responded well to a new incentive, the Millionaires Milestone Club, which will pay each member of staff a £5,000 bonus for every £1 million they generate in travel sales. The bonus is uncapped, and despite having been introduced only six months ago, six members of staff have already joined the club. Better yet, said Barrett, was the news that as many as 278 Hays staff are on track to hit the target by the end of the club’s first year in existence.
