Just over a quarter (26%) of respondents to TTG’s latest Travel Agent Tracker survey said they took more new enquiries in October than then did in September, up 4% month-on-month. However, less than a fifth (18%) said they took more new sales and bookings in October than they did in September, down 5% month-on-month.
There was also a fall in the average number of new enquiries reported by respondents in October, down from 43 in September to 40 in October. The figure peaked this year at 49 in October.
Additionally, there was an uptick in the number of Tracker respondents who said converting new enquiries was among the biggest issues they were facing, up from 20% in September to 25% in October. There was also a dramatic increase in the number of respondents who flagged a lack of interest and new enquiries as one of their biggest problems, up 12% month-on-month from 18% to 30%.
These two issues now sit third and fourth behind price increases and getting hold of suppliers, flagged by 57% (-5% month-on-month) and 46% (+8% month-on-month) of respondents respectively.
"Pricing is causing me most problems," said one respondent. "Prices for 2023 are so much more than in recent years – customers just don’t seem willing." Another said: "Value is the watchword. Guests aren’t necessarily looking for the lowest price, they are looking for value. They continue to price around. They’re not yet willing to sacrifice their holidays, but as we’re heading into a traditionally quiet period, it will be hard to judge. Peaks will be the next barometer."
On cost of living, one agent said they were offering payment plans to get bookings over the line, while others said that while general confidence in travel was returning – resulting in more people turning to agents – holiday price hikes and mounting energy bills were dampening their enthusiasm to book.
"Clients are generally being cautious," said another respondent. "Some are looking a long way ahead – up to 2024 – while others are booking later to see what the situation is at the time. Generally, people want to spend the same as they did this year, but prices have increased."
Enquiries vs staffing
October market figures show nearly three-quarters (72%) of respondents said they felt the Med was performing well relative to their expectations, followed by the US and Canada (43%) and non-Med areas of Europe (36%). Asia enjoyed the sharpest resurgence in October, up from 17% to 26% by the same measure, while the Caribbean fell back from 45% in September to 31% in October.
The beach sector continues to perform well relative to agents’ expectations, highlighted by nearly seven in 10 (69%) respondents, while cruise broke though the 50% barrier (51%), up from 47% in September. There was also an encouraging rebound for adventure touring, with 16% of respondents saying it was performing well relative to their expectation (up from 8% in September), while escorted touring remained at 20%.
Other challenges highlighted by respondents included availability and capacity (23%), airport/flight delays and disruption (18%) and heightened admin (13%). "Still feels like there are lots of hoops to jump through – Covid admin, passports, visas… it seems never ending," said one respondent.
"Our current problem is the volume of enquiries versus the number of staff we have," said another. "We will end up being the victim of our own success if we cannot grow with demand, as staffing seems impossible. Clients are impatient – they’re expecting answers and results the same day when, in reality, it is taking several days to get through them all (all good problems to have)."
A third said: "While some operators have vastly improved call wait times, we’re still waiting nearly two hours for others, which gives us – and our clients – less confidence in their ability to assist with post-booking problems.
"This means we’re shying away from booking with operators we can’t contact easily. Most customers are happy to travel, and many are doing so last-minute – we have far fewer forward bookings than departures within 12-16 weeks – but some clients are still worried about possible disruption at airports and future airline cancellations."
