John Escott, general manager of Elite Travel Group, discusses the airline industry?s wellbeing in the weeks leading up to the UK?s ?exit day?...
It has been a busy start to the year here at the Elite Travel Group and reports from the members have been very positive on the whole with many reporting strong growth since the turn of year. A few, however, have reported that business is a little more patchy with very busy days followed by very quiet days.
One positive feature appears to be the sale of tailormade and luxury holidays which, of course, is where good independent travel agents show their expertise.
Political uncertainty and scare stories in the press are causing some customers to be apprehensive about holidaying abroad, especially in Europe. Let?s hope it is sorted soon and we can all move on with our lives.
It is great to hear that British Airways will be celebrating its 100th anniversary this year and for people of a certain age it?s great to see a Boeing 747 repainted in the colours of BOAC to celebrate its past. Congratulations to British Airways and good luck in flying the flag for the next 100 years.
However, it seems there is a cloud forming over some areas of the airline industry. We have seen the demise of Flybmi and the sale of Flybe here in the UK. When an airline collapses we always ask ourselves if passengers are adequately protected. Clearly the answer is ?no? as, yet again, hundreds of passengers were left without flights when Flybmi collapsed. The airline insolvency review will shortly be reporting on this very subject. Let?s hope it recommends the extension of consumer protection to airlines by the introduction of some sort of air ticket levy. ATOL protection is in place for packages with flights and flight only bookings need to be protected in the same way so as to maintain the equilibrium of trust between airlines and their customers.
Another area of concern is the rise of non-bonded agents who appear to be enjoying the same benefits from suppliers as those paying for ABTA, ATOL and membership to a consortium such as the Elite Travel Group. It would appear that some suppliers pay these ?agents? a referral fee which is often the same as that offered in commission to a professional bonded travel agent while still offering the same benefits such as fam trips. How do we ensure fully bonded agents are differentiated from those who are non-bonded? To be honest, I don?t have a solution, but nevertheless we have an obligation to address this anomaly.
As an industry, we need to make sure that the customers see the benefits of ABTA, ATOL and the added benefits of agents being part of a proactive and supportive consortium. The suppliers also have their part to play! I know I have mentioned this before, but I am passionate about travel agents supporting those suppliers who are trade friendly, have price parity and put a lot of effort in to supporting their retail partners. Here at the Elite Travel Group we have many operators who are extremely supportive with training, sponsoring events and marketing and visiting the members regularly. It is so important that we repay this effort and support ? it?s only fair, really.
An unavoidable consequence of the EU debacle, it seems political uncertainty is destined to continue over the coming months (or years, as our luck might have it). Will we leave on the March 29? Will leaving be extended? Or ? as many have speculated in recent months ? will we leave the EU at all?
Whatever your views I just wish it would be resolved so that normality can return to the travel industry, the scare stories will then stop and customers can book their holiday without any having to prepare for the worst case scenario before take-off.
