Holidaymakers spending more as bookings rise

People are spending more on vacations even as finances are squeezed by the cost of living, travel agents say.

Several holiday companies and tour operators said demand was high as bookings surged in early January.

For some people, booking now gives them something to look forward to and work towards, but for others, holidaying is not an option due to higher bills.

The average spend per holiday this week was £3,104, up about 5% year-on-year, according to the Advantage Travel Partnership.

But there are concerns that passengers could face delays and disruptions due to staff shortages that hit airports last summer after the airline industry struggled to replace the thousands of workers laid off during the pandemic.

Rory Boland, editor of which? Travel said some airlines and airports have “had struggled in the past to cope during peak travel periods, so it’s difficult to have full confidence that we won’t see disruptions in the coming months”.

Meanwhile, aviation expert John Strickland said this summer was “still an unknown quantity” but additional airlines, airports and baggage handlers had “made an effort” to increase the number of workers. “I think we’ll be in a better place,” he said.

Holiday bookings were expected to skyrocket now that Covid restrictions have been lifted, but are still below pre-pandemic levels.

According to Advantage Travel Partnership, the UK’s largest network of independent travel agents, Spain is the most popular booking destination to date, along with Greece, the US and Turkey.

Julia Lo Bue-Said, the group’s chief executive, told the BBC that while average prices have gone up, the extra cost hasn’t put people off booking.

She said since the beginning of the year, sales across its network of 700 travel agencies have increased by 75% compared to the same period in 2022.

“It’s really very interesting when we look at the economic climate and the cost of living… and look at holiday sales — there’s such a difference,” she added.

“Consumers don’t give up their vacations. They will do absolutely anything to afford a vacation.”

Mr. Boland of which? said that because demand for holidays is high across Europe, “operators may increase the price of a break”.

“Inflationary pressures are also contributing to higher prices for travelers as tour operators begin to pass on additional costs for energy, fuel and even groceries to holidaymakers,” he said.

Andri Benson, who runs a wedding planning company, has been booked to go to the Greek island of Rhodes in June with her parents, sister and niece.

She told the BBC she was unwell in November and her sister was ill over Christmas so they wanted to book a trip to look forward to and they also wanted a trip where their parents didn’t have the ‘stress’ would have. Dealing with Covid passports and travel papers.

Ms Benson, who lives in south London, said the holiday was more expensive but added: “The feeling was when we go on holiday we want a nice place.

“We managed to get a really good deal. I want to make the most of my time with my parents,” she said.

Jane Griffin, owner of a PR consultancy in East Sussex, has booked a two-week vacation to Tuscany for the summer with her husband and five-year-old daughter.

She said this trip cost them less than last year because they ended up booking a self-catering place in case Covid was an issue.

“I think the snow, cold weather and being cold at home due to rising energy bills made us think about moving to warmer climes as soon as possible,” she said.

Although travel agents said people are spending more on holidays, average prices could be higher as more long-haul destinations become available after being largely closed due to Covid.

Several companies have seen an influx of bookings on what is being marketed as “Sunshine Saturday” – the first Saturday in January when people typically book summer travel after the bank holidays.

Online travel search company Skyscanner has announced that its bookings from UK travelers increased by 30% in the first week of this year compared to the corresponding week in January 2019.

Hays Travel, one of the UK’s largest travel agencies, said bookings quintupled on January 7 compared to the same day last year.

“Despite the challenges with the cost of living, people seem to want to give up annual leave last,” said Chairwoman and Owner Dame Irene Hays. “We’ve had an extremely busy start to the peak booking season.”

Virgin Atlantic also said weekend bookings were 70% higher than the same weekend in 2022.

Tui and Jet2 declined to provide figures on bookings, but the latter said this summer would be the “biggest program ever offered”.

Online travel agency On The Beach, which halted sales of all summer 2021 holidays due to Covid uncertainty, said it expected this weekend to be a “shock absorber” to bookings.

Zoe Harris, chief customer officer, said his agents are also seeing customers willing to spend more on their trips abroad.

“We are seeing more customers booking four and five star hotels [hotels]”, she said. “People who haven’t had that many vacations in recent years – when they go, they’re going to treat themselves.

“Our bookings are largely back to the level of 2019.”

She said all-inclusive travel is also on the rise.

Ms Lo Bue-Said agreed, saying all-inclusive vacations make it easy for families with children to stay on budget.

But while families look for summer sun, Booking.com said the top-booked destinations by Brits for mid-February included stays in London, Edinburgh, Manchester, Liverpool, Glasgow and York.

Although holiday bookings are returning to levels not seen since Covid, fewer packages and flights are available than in 2019.

The travel industry is still recovering after an almost complete shutdown at the height of the pandemic.

Airport staffing shortages saw some trips delayed and canceled last summer after thousands of workers lost their jobs due to the pandemic. Running costs for businesses are now also higher as the cost of things like fuel is inflated.

The smaller selection is also due to the collapse of the major global travel group Thomas Cook four years ago.

Which one? Travel’s Mr Boland said customers were “right to expect a significant improvement in service from airlines and airports in 2023”.

“Given that every airline and airport knows how many travelers are traveling, when, and have their money already deposited, it is inexcusable that they are not adequately resourced their business to get travelers to their destinations as promised,” he added.