Agents told TTG that bookings accelerated during July after a cautious March and April, with many also reporting continued demand for long-haul holidays and cruise bookings for 2027 and beyond.
Joanne Martin, owner of four-branch Scottish agency Love To Travel, said: "We're seeing a very strong lates market. I've never seen it so busy before."
Craig Travel Director Andy Nelson said his six branches were trading ahead of last year, with bookings, passenger numbers, average spend and commission all increasing after a subdued spring.
"I think a lot of people put off booking their summer holidays, whether that had been due to the threat of airline fuel not being available, or concerns about flying to or through the Middle East," he said. "We probably had a flatter spring than we would have hoped, but we've certainly made up for it since."
Tricia Lester, Head of Retail at Ashdown Travel, said the agency had experienced a similar pattern, with customers who had delayed decisions finally pressing ahead with their plans.
"I think the situation in the Middle East made people hesitate, but it's almost got to the point where they've held off for so long they just want to get it booked," she said.
'We did not expect this'
Martin said customers were booking holidays just 10 to 14 days before departure, while Cerys Stagg O'Connell, Sales and Social Media Manager at La Vida Travel, estimated that between 50% and 60% of walk-in customers wanted to travel as soon as possible.
"We're doing a lot of lates at the moment, which we did not expect," Stagg O'Connell said. "This week, we had three or four customers who wanted to travel within the next two weeks – some even wanted to travel the very next day."
Mark Donaldson, Branch Manager at Your Co-op Travel in Solihull, said the store was also seeing improving demand, with weekly targets being achieved and bookings expected to strengthen further.
Middle East caution pushes customers towards Turkey
Although confidence has improved, agents said the Middle East continues to influence destination choices. Donaldson said his team had seen virtually no demand for United Arab Emirates holidays, with some customers switching from Dubai to Turkey where the safety and value proposition was more appealing.
"I think because it's not the euro, you can get more value for money in terms of the quality of the hotels – four-star, five-star, the palace-style hotels," he explained. "If you were to book a four-star to Turkey, it's generally cheaper than booking a four-star to the Canaries or the Balearics."
Nelson said customers were gradually becoming more comfortable using Gulf hubs for long-haul travel, even if they remained cautious about visiting the region itself.
"We have a whole raft of bookings for people going to Japan next year, going through Qatar or Dubai," he said. "I think when you're booking something for the best part of 12 months away, the hope is that the whole area will be calm by then."
Headlines make customers 'twitchy'
Agents also said customers were highly responsive to news coverage, with headlines about conflict, protests and natural disasters prompting questions about whether destinations remain safe.
Nelson said Craig Travel had received concerns from customers travelling to the Balearics and Canaries following reports of anti-tourism demonstrations, while the recent earthquake in Japan had also led to questions about future travel.
"We had people who said they were twitchy about going to Majorca or the Canaries because they'd heard people were being sprayed with water and that sort of thing," he said.
"Everything that's in the news makes people nervous, but the majority of people tend to take a common-sense approach and say, 'Well, that's nowhere near where I'm going'. They trust the tour operators and the advice from the Foreign Office."
'We're really hopeful'
With July helping to recover lost ground, agents are now looking ahead to the autumn with renewed confidence.
Lester said Ashdown Travel had increased its local marketing activity after finding enquiries harder to convert earlier in the year, including leaflet campaigns and partnerships with local businesses.
"We're really hopeful for a good September," she said. "August might be a little quieter, but July has definitely got us back on track."
While Martin predicted that the lates market would continue into September.