TR AVEL SPEND IS SET TO GROW NEXT YEAR DESPITE A DROP IN TRIPS
OVERHEARD
BOOKING TRENDS
“We need to build strong brands
and give the customer what they
want.” Manny Fontenla-Novoa, chief
executive, Thomas Cook
“We feel bullish as an industry...
demand will continue to outweigh
supply.” Jo Rzymowska, associate VP and
general manager, Royal Caribbean Cruise Line
LEISURE TRAVEL SPEND will grow over the
next year but the number of trips taken will
decline, according to market figures released
by Ascent-MI.
Results show there was a positive growth
in the average travel spend for summer 2008
with prices up 10% for winter – they are
predicted to continue to rise for summer
2009 despite volumes being down between
2% and 3%.
Speaking at the Travel Convention
Malcolm Preston, head of travel, at
PricewaterhouseCoopers said: “Things
are looking good for summer 2009, with
predictions showing pricing will be up by
nearly 10% on winter 2008 and capacity will
be high.”
“What’s more, we are seeing a significant
shift to all-inclusive packages as the pounds
customers took out of their pockets in
the eurozone this summer didn’t go as far
— they’re now looking for greater value
for money.”
At last year’s Travel Convention the industry
was facing a situation where many customers
were favouring direct bookings, a scenario,
which has now ‘flipped on its head’ with
the high street enjoying a ‘disproportionate
amount of bookings’.
All-inclusive holidays have seen a 19%
increase in passengers and agents have already
sold 12% of capacity for summer 2009 as
customers look for better value for money and
financial security offered by ABTA and ATOL
registered agencies.
Despite the current economic downfall and
the closure of companies such as XL, Preston
is optimistic about the future, saying: “The
financial market is like a Grand Prix where
every driver must take a pitstop in order to
finish the race. Similarly, our economy is
taking a pitstop and what the government and
the travel industry do to reassure customer
confidence will be vital to our businesses
coming out stronger at the other end and
continuing the race.”
“The failure of XL shows the total
incompetence of government.”
Steven Freudmann, chairman, Triton
“Word of mouth is the number one
factor in persuading people to take
a cruise.” Giles Hawke, sales director,
Complete Cruise Solution
SUSTAINABILITY
SOLUTION
“We screwed up the opening of T5...
the legacy has lasted longer than
the reality.” Martin Broughton, chairman,
British Airways
ABTA IS TO roll-out the Travelife
Sustainability System, an all-in-one solution
to helping manage the environmental and
social issues facing travel businesses, to all
ABTA Members.
The initiative has been developed by
the FTO with funding from the European
Commission and input from 60 different
organizations from around the world.
The system provides a set of guidelines for
both tour operators and their suppliers to
follow which can be rated through an online
checking process. Hotel and accommodation
providers are assessed as bronze, silver or gold
depending on how sustainable and socially
engaging their businesses are.
UK tour operators are already displaying
the Travel Sustainability awards in their
brochures for hotels worldwide and the global
brand will be recognized by customers, tour
operators and tourism businesses.
Andy Cooper, ABTA’s head of development
said: “There is a huge degree of confusion
and misunderstanding about sustainable
and responsible tourism. We hope that by
providing a simple tool we will be able to help
Members and suppliers find a simple path to
address all their sustainability needs.”
Chris Thompson, head of responsible
tourism of FTO, who developed the Travelife
Sustainability System added: “This is
not another ‘eco-label’ or ‘environmental
management certificate’, it’s a sustainability
recognition scheme that enables businesses
to promote their environmental and general
sustainability efforts to a wide audience.”
”I don’t know anyone on the
dancefloor except my MD who is
dancing with a tart.” Anonymous
18 ABTA Magazine November 2008