PwC urges agents to make use of consumer uncertainty

PwC urges agents to make use of consumer uncertainty

Travel agents have been advised to take advantage of ‘uncertain’ customers by selling ancillaries. “All-inclusive holidays have had staggering growth at 34%,” explained GfK Ascent-MI Managing Director Sarah Smalley. “All-inclusive has been rising because consumers are looking for certainty in value and cost,” added PricewaterhouseCooper Partner David Trunkfield. “Agents can take advantage of this by selling add-ons such as prepaid cards, excursions and transfers, which will give them a holiday spend upfront.” Trunkfield added that although booking patterns and currency exchange rates are ‘volatile’, consumers were responding to value for money and will move to where the value is. Therefore, GfK has found that non-euro mid-haul destinations such as Turkey, Egypt, Tunisia and Morocco have seen a 21% increase in traffic, although Spain still remains the top location. “Countries in the euro-zone are down 11% as a result of the exchange rate and capacity cuts,” explained Smalley. In addition, Smalley said that traditional 14-night holidays were out of favour and families want a more flexible approach. “Demand for the 8-13 night stay is growing and six nights and under holidays are starting to pick up,” she revealed.  As a result, Trunkfield urged agents to remain flexible, think logically about capacity and “hold your nerve on the booking curve” (i.e. be more confident in late bookings).

Gary Marshall
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Gary Marshall
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