Advantage Travel Partnership says bookings from the cost-conscious family market are beginning to pick up following a slow start in January, with discounts and ‘strategic price adjustments’ stimulating demand.
The recent uptick in sales follows ‘significant’ last-minute sales for both February half-term and the Easter holidays, said Commercial Director John Sullivan.
In a trading update, he said the major operators are engaging in more activities to boost the family market than this time last year. “Normally, we wouldn’t see this kind of activity till later in the summer,” he said.
Speaking at the Advantage overseas conference in Malta, John said ‘all indicators’ suggest the late booking period will be busy, adding that the highest volume of bookings are departing in less than a month.
Chief Commercial Officer Kelly Cookes said: “More than 40% of bookings we are taking on a weekly basis are departing within 12 weeks, that is higher than I have ever seen it.”
Despite the additional tacticals in the market, John said the average selling prices are still ahead of the same time last year. “Consumers are buying based on value, looking to get the most out of their spend as opposed to looking for the cheapest price,” he added.
His comments were backed up by The Sun Head of Travel Lisa Minot, who said her readers are looking for more value, with all-inclusive the most popular holiday type. Kelly added: “I have never seen (value) be a driver like it has been in the past few months.”
She said this applied to all sectors, not just budget-conscious families. “In the ultra-luxury market, this could mean having a residency from a Michelin-starred chef,” she added.
The trend towards value for money among families is benefiting more affordable destinations such as Egypt, Morocco, Cape Verde and Tunisia – along with emerging cheaper countries such as Albania, Montenegro and Slovenia. However, John said traditional holiday hotspots of Spain, Greece and Turkey are still seeing strong demand.
Long-haul is also selling well, with revenue up 15% for Advantage members, he added. Florida remains the most popular long-haul destination, having received a boost from the opening of Epic Universe.
However, John warned that a weaker exchange rate, tipping expectations in the US up by as much as 5%, and the addition by some states of a pension contribution within tips are contributing to the perception that the US is becoming less affordable.
“As a result, more travellers are considering alternative destinations or opting for all-inclusive holidays, which offer better value and clearer budgeting,” said John. “For now, the strength of the US offering continues to attract demand, but changing perceptions around value may begin to influence future booking trends.”
Ocean cruise sales are up 16% year on year, and Advantage has seen ‘particularly strong momentum’ for cruises to more distant destinations, added John. Small ship luxury cruises are performing well in regions such as Asia, Australasia, and North America, he said.
