Vertical chief calls on operators to raise deposit fees

The chief executive of Vertical Travel Group has called on operators to raise deposit fees.

Peter Healey said the number of customers pulling their plans was one of the biggest issues facing the sector, and he expected the issue to get worse as the cost of living increases.

Many operators and airlines introduced low deposit fees and additional flexibility on booking changes in order to increase demand and rebuild confidence during the Covid-19 pandemic.

Healey said that approach is presenting a big challenge for homeworkers across brands.

One of the biggest issues we have now is tour operators competing with each other for the lowest possible deposit.

People aren't cancelling because they need to, they are cancelling because they can.

When it comes to the actual balance payment, many consumers pay around 50 for their deposit and it looks like a big number, especially with the rising cost of living, so they decide to do something cheaper.

Tour operators can bring down the number of cancellation by raising their deposits. I think it would be reasonable to have 120 heads.

Healey said he hoped to return to pre-pandemic turnover levels in three years.

He said that they feel like they are running at 70% of what they should be. We want to achieve that number in the year 2023.

He said that the business was in a strong position because of the investment made by the technology arm of the company.