Travel agents have been told the only way they will emerge from the coronavirus crisis is to “sell their way out” by tapping into pent-up demand for future holidays.
Firms have been offering low and flexible deposits to stimulate bookings as customers have been left unsure when travel will be safe, with the government still placing an indefinite timescale on its advice.
Titan’s new flexi-deposits, from £49, allow customers to amend new bookings up to 75 days prior to departure; Wendy Wu Tours is offering £99 deposits; and JTA is offering £25 deposits with free cancellations and amendments under its new Flexi Charter, as well as 2% bonus commission for agents.
Charles Duncombe, director of homeworking company Holidaysplease, said cutting costs and being “defensive” could only go so far.
The company made a £109,000 booking for Barbados in spring 2021 on Friday, which Duncombe described as “not so much a green shoot as a great big tree trunk”.
“I believe travel companies need to stay on the offensive,” he said. “You can be very defensive, and that will of course save costs and eke out your survival.
However, the only way to escape it completely is to sell your way out of it. You need to be able to punch back, no matter how many times you are getting hit.
Duncombe added: “Customers who are out there who might themselves be in reasonable jobs, their personal outlook might be absolutely fine. And they might be completely relaxed about booking for 2021. We have to recognise that there are people out there who are actually quite bullish and they might even want to go on holiday more than they ordinarily would. And some people want to stick two fingers up to the situation. Yes, you have to be sensible, you have to be slightly defensive, but I don’t think that should stop you from still trying some initiatives to get out there and try and tap into those customers who are still willing to book.”
Designer Travel launched a ‘Lock In Your Prices’ campaign, which managing director Amanda Matthews said was reducing cancellations and encouraging rebookings and new bookings.
“It makes so much sense for clients to be booking for 2021 now,” she said. “This will help suppliers plan for future capacity and lock in their prices, often with low deposits.”
C The World director Carolyn Park said clients were starting to realise the value of booking now, with the prospect of less capacity forcing up holiday prices for bookings made after the crisis is over.
Miles Morgan Travel has begun posting examples of bookings on social media, with cruise the biggest element. Chairman Miles Morgan said: “It shows, despite the situation, there is confidence out there.” But he warned agencies to take a balanced approach to sales and marketing.
