TTG’s latest Travel Agent Tracker survey explored bookings and agent sentiment in September, charting the impact of the Queen’s passing against a backdrop of ongoing government chaos following the appointment of Liz Truss as prime minister, who has since resigned.

Less than a quarter (22%) of respondents to the survey said they took more new enquiries in September than they did in August – down from 53% when comparing trading in August to July.

It was a similar story with new sales and bookings; just 23% of respondents said they took more new sales and bookings in September than they did in August. This compares with 42% a month earlier. The average number of new enquiries among Tracker respondents, meanwhile, was 43 in September, down from 49 in August, while the average number of new sales and bookings was 31, down from 35 in August.

Read the full September report here

“Cost of living has bitten, especially after the new prime minister [Liz Truss] and the ‘mini-Budget’,” said one respondent. Another said: “After a buoyant summer, bookings have taken quite a downturn in September, more than expected.”

Several respondents explicitly highlighted the effect of the Queen’s death on trading. “Since the Queen passed, business has not been as good as before,” said one, while another said the Queen’s passing “saw a slowdown in sales for that week”. A third said: “Customers are coming back, but September business was affected by the Queen’s death, after which there was a complete lack of interest.”

Others highlighted a more general slowdown in trading. “Low footfall is a big issue. Customers seem to be shopping around more,” said one high street agent. Another added: “I’ve been in travel since the late 1980s, so I’m always up for a challenge, but have noticed new clients like to compare prices online and book direct.”

A third commented: “I’m feeling a bit nervous, as future bookings have slowed. We would usually have big demand for late half-term October bookings, and we’ve definitely seen a slump in enquiries for Christmas.”

For the second month in succession, Tracker respondents ranked “price increases” as the biggest issue facing their businesses, with 62% of agents highlighting it as an issue (down from 65% in August). There was also a three percentage point month-on-month increase in the number of agents flagging availability and capacity as a major issue, up from 25% to 28%.

One agent said travel was “a totally different vocation” at the moment owing to price hikes and currency fluctuations, with both the economic situation in the UK and the cost of living crisis clearly front of mind for many clients.

“For clients who haven’t travelled since Covid, price increases have come as a real shock. Even those with healthy budgets looking for last-minute October half-term availability have been priced out of the market due to lack of supply and increasing flight prices,” said one agent.

“A lot of customers are asking about 2023 but are put off committing due to rising bills – it means holidays are taking a back seat,” said another.

Amid a challenging trading landscape for agents and economic conditions for their clients, there were positives in September; more than four in five respondents (82%) said they dealt with fewer than 10 amendments or rebookings, while more than nine in 10 (93%) reported fewer than 10 cancellations.

The ongoing issue of supplier contact has also eased. For much of the year, it has been ranked by Tracker respondents as the biggest challenge facing their businesses but after slipping to second in August behind price increases, the number of agents ranking it as one of their three biggest concerns fell sharply again in September from 57% to 38%.

Despite trade and national press reports suggesting consumers are seeking to control holiday spend by booking all-inclusives, only 40% of respondents said the all-inclusive sector performed well relative to their expectations in September – the lowest level of the year.

There was an encouraging rebound in agent confidence in the escorted touring sector, with 20% of respondents saying it performed well relative to their expectations in September, up from 12% in August. Cruise remained buoyant (47%), albeit down from 57% in August and 55% in July, while nearly half of respondents (45%) said the Caribbean performed well relative to their expectations, up from 41% in August.

TTG’s Tracker continues to chart the trade’s recovery from the Covid crisis. To participate, look out for the monthly survey emails or head to ttgmedia.com/tracker. Send feedback to jchapple@ttgmedia.com.

You can read the September survey report in full here.