Agents play a ‘massively important’ role in helping customers understand the value of a holiday, according to TUI.
Speaking at the ABTA Convention in Madeira, Head of Planning, Pricing and Commercial Sales UK & Ireland Amy Tidball said value was the ‘hottest topic’ in the industry right now.
“It’s something we should all be thinking about as an industry and there are a few things we need to do,” she said, adding that better communicating the value of a holiday was essential. “Agents are perfectly placed to help us with that as there’s only so much we can do in our content and imagery. They play a massively important part in helping customers spend their money with us.”
The focus on value comes as customers grow more anxious about their finances. PwC Partner Rick Jones told the ABTA Convention that concerns about the future were ‘startling and increasing’, pointing to the firm’s latest report. It found 61% of 18-24-year-olds were concerned about job prospects over the next 12 months, while 62% of 25-44-year-olds were worried about mortgage or rent increases.
He said it was ‘very valuable’ for the industry to meet that uncertain demand with a product that fits.
However, Amy said that value wasn’t solely financial, noting that customers are also looking for quality and a true representation of the holiday booked, as well as support.
Similarly, P&O Cruises Associate Vice President Sales and Distribution Ruth Venn said customers wanted ‘flexibility and trust’ more than in previous years, in addition to value.
She also praised agents for doing a ‘brilliant job’ of breaking down the value of cruise packages.
Ruth noted agents had been offering more low deposits to entice customers in the past year, with monthly payments becoming more popular, describing spread payments as a ‘way of appealing to the masses’ amid cost–consciousness.
For that reason, Ruth also said Black Friday was becoming more ‘important’ for UK customers. “We are starting to think about that over the next few weeks as we get into Black Friday campaigns,” she said.
For TUI, all-inclusive bookings have increased year-on-year – and is the number one filter used on all platforms by both customers and agents – partly because the total price is upfront, according to Amy.
“It gives customers reassurance and peace of mind because on holiday everything is included – you know what you need to spend,” she added.
On destinations, North Africa is a growth area, said Amy, echoing comments made by easyJet holidays CEO Garry Wilson, with Egypt particularly strong for TUI for both late and advance bookings.
Flight Centre reported an uptick in demand for Scandinavia, with Chief Financial Officer EMEA Adam Murray calling it a ‘destination to watch’. He was unsure of the reason but suggested it could be down to soaring temperatures in other parts of Europe this summer.
Norway has been a ‘standout’ for P&O Cruises, now accounting for 20% of the line’s capacity and with one of the highest guest satisfaction scores, Ruth said. “It’s a really good entry point for people looking to do something a bit different in their holidays.”
More customers are also opting for seven-night itineraries, which Ruth suggested was linked to the late-booking trend, as people booking closer to departure are less able to take extended time off.
