Travel firms confident they can bounce back in 2022
- Published
Travel firm boss, Lee Thompson, says the possibility of higher airline ticket prices will not stop most people from going abroad on holiday this year.
"The need for human connection, as we've all been isolated for so long... Everyone is desperate to meet other people and have new experiences," says the founder and owner of London-based firm, Flash Pack.
The travel company specialises in group adventure holidays for solo travellers in their 30s and 40s. He says the firm has seen a "massive surge in bookings" in recent months, and that people are so desperate to get away that they won't mind paying more for their flights, if aviation fuel prices rise as a result of the sanctions against Russian oil exports., external
"Over the last couple of years we've gone from not being able to travel at all, to spending hundreds of pounds on Covid tests each time we want to leave the country," adds Mr Thompson.
"After all that, I don't think increases to flight prices will stop 'Flashpackers' [or other holidaymakers] from doing something they've been dreaming about."
Within the travel industry, the past two years have been especially difficult for independent firms, as they don't have the deep pockets of the multinationals. Yet those that we spoke to are now confident that the holiday sector is going to strongly recover.
Flash Pack had to go into administration in November 2020 due to the lockdowns. "Ninety five per cent of our revenue just disappeared," says Radha Vyas, who co-owns the business with Mr Thompson, her husband.
"We were left with a big office in central London, 55 staff, big overheads, and no money coming in."
The firm was in administration for a few months before the couple were able to win it back after re-mortgaging their home and paying back customers who had been owned money. They relaunched the business in November 2021.
"It's really encouraging to see the business taking off again," adds Mr Thompson. "And we're already on track to hit pre-pandemic levels by 2023. Booking on both sides of the Atlantic is booming, but Covid restrictions remain challenging, and we have had to become experts on them."
Lorne Blyth is the the founder of travel firm Flavours Holidays, which organises cooking, painting, pilates, language and photography classes in Italy and Spain.
"Our customers aren't so concerned about rising costs of flights," she says. "Covid meant that some of them haven't managed to go on holiday abroad for over two years. So, it may cost them a bit more now, but they have the money to spend and want to get away."
Back in 2019, Edinburgh-based Flavours operated 235 Italian and Spanish trips, but then none from March 2020 to September 2020.
To secure an alternative revenue stream the firm started running online classes, so that people from all around the world could learn how to paint, or taste wine, from the comfort of their own home. The firm ended up holding around 80 Zoom classes a month.
"It was a great way to keep a sense of community alive with our guests," says Ms Blyth. "Some formed friendship groups online, and then organised to go on one of our holidays together [when they started up again in limited numbers in the autumn of 2020]."
Ms Blyth adds that her firm's bookings for 2022 are now "getting back to 2019 levels". She adds: "It's clear that after two years people are really keen to travel again. The conversations are much more positive with people accepting testing requirements, and realising that it's just part of travel post-Covid."
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Most people now just want to go on overseas holidays again, says Natalie Bannister, the owner of Cornwall-based, Gutsy Girls, which organises group adventure holidays for women. "Based on the interest in our 2020 holidays I think everyone is just ready for an adventure," she says.
Before the pandemic struck, she was organising 70 trips a year. Then in March 2020 she was in Norway preparing one of her firm's holidays when the country went into lockdown.
"I had to go into quarantine, and my guests were due to come over in two days for a week's cross country ski and yoga holiday... but people were being turned away at the airport," says Ms Bannister.
She had to shut up shop for five months, before offering a handful of trips across the later half of 2020 and last year.
"My whole identity was in my business - it was the thing I'd put all my passion and energy into for previous two and a half years," says Ms Bannister. "But then slowing down for two years was a great opportunity to perfect what we offer our guests, and now we are in a great place to grow the company sustainably.
"I'm excited to now run more trips to meet our community's demand, allowing more women to connect with each other and nature."
Despite this optimism, some working in the travel sector remain cautious. One such person is veteran industry expert and commentator Mike Bugsgang, managing director of UK travel and tourism consultancy, Bugsgang & Associates.
"Having endured the impact of a worldwide pandemic over the past two years, those travel businesses that have survived are now facing further challenges on several fronts," he explains.
"The huge increase in the cost of living, particularly energy and fuel, coupled with inflationary food and drink prices, is likely to impact the outbound market in the immediate term. The indications are that the domestic market, with people sticking to affordable holidays and short breaks in the UK, is predicted to benefit most in 2022."
Back at Flavours, Ms Blythe says that running a travel business means you always have to be adaptable. "It's not going to be a straight line, it's always going to be a bit bumpy. Whether it's a new variant of Covid, or something else, you always have to look for new ways to keep your community together."