The major issues facing the industry are outlined by Reality Training.
Travel Weekly has reported on the decline in activity in travel due to the cost of living crisis in the UK.
It's worrying that the news is that way. Interest rates are going to go up to 8% to keep it down, and we are hearing about $5k bills for energy.
It was unlikely to be positive if you had no recollection of rates at this level. We have been able to find money for holidays because of low borrowing and mortgage interest rates.
The travel industry has been thrown into a busy summer without the staff or resources to keep up with demand all while the economy is suffering from rocketing inflationary pressures.
Over 1.5 million people over the age of 50 have stopped looking for jobs. Where can I find the experience to replace that? Where are your best sellers right now?
Where do you get the knowledge and experience? When they want 10% more money, how can we afford the talent we need?
Good people are needed to meet the demand for travel. New people aren't the only ones. Good quality people are needed to communicate and sell.
An enthusiastic apprenticeship is not as good as it could be. The performance of one or two great communicators is what will make a new team of average communicators inferior. How do we pay for them?
The size of the task that lies ahead can be seen when you drill down into the main hurdles.
The United Kingdom's exit from the European Union.
There isn't a lot of media coverage dedicated to this. Let's talk from personal experience. When going to Europe, we will face travel issues occasionally because of the removal of simple travel conditions and rules on passports.
They can't cope with the demand from a travel-mad population, whilst they try and catch up after the Pandemic, and are struggling to hire staff.
The buses were not able to take us to the planes because there was no one to drive them. We get in our cars and go on holiday in order to avoid this. Until a better deal is done, the fall-out of this choice won't improve.
There is a desire to travel.
The ability to travel, live and work across Europe is one of the biggest things we have given up. How many times a year do you go on holiday and wonder how much it would cost to buy a home here? The desire to live for a long time in a warm climate like Spain or Greece has been shot down.
The maximum stay for non-residents in the EU is 90 days. The dream that was freely available for so many people in the UK is no longer available due to this realization.
We want to explore and travel in Europe. Europe will still be the best holiday option for many despite the fact that our vibrant economy means we can travel to other places beyond Europe. We still want to travel, but we don't have as many options as we would have liked.
Inflation and energy.
Every household will have to rethink their spending because our bills are rocketing and mortgage interest rates are going to stop us from spending. I won't be allocating any money for holidays if I did before.
If I eat in a restaurant, go to the cinema, or shop for clothes and technology, they will be re-assessed against lower wages, higher prices, and energy bills. We watch as our EU neighbours cap their increases for energy at 4%. I don't need to be political here because these are the facts.
No, this does not mean we won't travel. Shifting our spending patterns is what we will have to do. If we have an income, we will look at that against outgoings, make savings where we can, and try and find money for holidays and luxuries.
What to do?
We need to create a positive level of confidence for our customers when we are a salesperson or travel agent. Many of us think of ourselves as financial advisers to our customers as we suggest ways to help them pay for their trips. They can do it how they want.
If they are interested in travel, then that is a very valuable inquiry. If they hadn't worked out how they could afford their trip, they wouldn't be asking. Our job is not to make it cheaper for them, but to make it valuable to them so that the investment they have made is repaid.
We are currently working with a major travel brand on their marketing and sales processes, and other retailers in other markets who are aware of the importance of converting a higher percentage of their inquiries. In tough times, this is the secret.
I guarantee that your conversion rate will soon drop to a sub 20% figure if you don't change anything. You'll be getting fewer inquiries anyways. What strategies can you use to increase the conversion rate? Is it possible to raise it to 40%? What rate needs to be in place for the next two years to help you through this inflationary period?
How confident are you that your people can increase conversion? If you don't use a training company, make a note of this and follow up. There is a pitfall of travel.
If you don't follow up on your quotes and proposals, you will affect your conversion. It will be less about what you are selling and more about how you are selling it.
All Rights Reserved © 2024
