Consumer insecurity over jobs and personal debt means that the next 12 to 18 months will continue to be difficult for the travel industry, according to the boss of a leading UK operator.

 

Hoseasons chief executive Richard Carrick predicted that 2010 would be a “very tough year” due to rising unemployment and increasing insecurity amongst households.

 

The trade also had to factor in the potential negative impact on travel of a general election and the football World Cup, both of which traditionally suppress demand for overseas holidays, he warned.

 

Carrick, speaking during a Great Debate session at the Advantage Travel Centres conference at Heathrow, said people still had the need to get away but were reducing their time away from 14-nights to either a week or three to four nights in the UK.

 

“People are spending less on travel and taking shorter durations,” he said. “Insecurity of domestic circumstances will not go away for the next 12 to 18 months.”

 

He revealed that Hoseasons’ bookings through agents were up by 25% this year, with bookings overall rising by 30% but the rise in sales through Advantage agents was less at 20%.

 

For 2010, overall bookings were up by 70%, with those through the trade up by 63% but with Advantage agents only showing a 24% increase, demonstrating that they were “underperforming” against other agents.

 

Sunvil Holidays managing director Noel Josephides admitted to be “petrified” at the start of the year as bookings slumped by a quarter over the same period in 2008, but said business had since recovered to now be “almost level”.

 

TUI distribution director Nick Longman said sales for summer 2010 had started off strongly, leading him to be optimistic for next year.

 

“People who stayed at home [this year] will go abroad next year,” he predicted.

 

Royal Caribbean International UK and Ireland vice-president and managing director Robin Shaw said the introduction of new ships next year would lead to “significant levels of growth” but he added: “The issue will be rates”.

 

by Phil Davies