+ ON THE SOAPBOX: Mark Tanzer, Chief Executive, ABTA - The Travel Association

Mark Tanzer has been Chief Executive of the ABTA since September 2005. Before joining ABTA he held senior strategy and corporate finance positions in a number of industry sectors, and was Group Strategy Director of Centrica Plc, the parent company of British Gas and the Automobile Association.

The removal of all travel restrictions on return to the UK in March last year was a momentous moment for our industry, signalling the start of the end of over two years of massive disruption which had led to extensive lost revenue and thousands of redundancies in the sector. It sent a very clear message that overseas travel was back once more, after a time when for lengthy periods taking an overseas holiday was actively illegal.

This resulted in a vastly improved year for the industry in terms of number of travellers, with ABTA data reporting that 45% of people took a foreign holiday from September 2021 to August 2022, up from 16% in the same time the previous year. Overall numbers were still below pre-pandemic levels, reflecting that in some countries, restrictions or requirements still remained and there was a proportion of people who continued to feel a bit more cautious about heading overseas.

The reopening of travel was not going to be without its problems. There was little time between it being announced that restrictions were lifting, and it coming into force. So there was a lot to do in a short amount of time, and many parts of the industry were having to cope with reduced staff. Problems did occur, with some people experiencing delays, longer queues at airports or flight cancellations. However, for the most part people were able to get away and travel without issue, with millions of people finally able to take a much-missed overseas holiday or reunite with friends, family and business partners. The industry was also able to overcome many of these initial issues very quickly – a reflection on how well the industry can pull together in a time of challenge.

Although great steps have been made to address the staffing level problems caused by the pandemic, recruitment and retention of staff across the industry remains a challenge. Our industry is in competition with many other sectors for good quality staff. Many ABTA members have been very creative in their efforts to address the issue, looking to attract staff from less traditional sources and new ways to retain and incentivise employees. Supporting members in this area is a priority for ABTA and we will maintain and continue our efforts through our work with our university and industry partners. We are also running a campaign on social media emphasising the wide range of career opportunities on offer and why travel is such a fantastic industry to be part of, and have a wide range of training to help with staff development.

So, where do we stand in 2023?

As always, the post-Christmas and New Year booking period is incredibly important for the trade and gives the clearest possible indication as to the health of the industry. Reports in the media and feedback from members have been overwhelmingly positive with high levels of bookings. The reasons for this will include a desire to book early to lock in a good value price as well as the importance of holidays as something to look forward to throughout the dreary winter months. In addition, for many, 2023 will be the first time in three years that they will be taking an overseas holiday which will inevitably drive up demand. This was reflected in our own research from late 2022 which found that 61% of people were planning to head abroad in 2023 and 31% of people were planning to book earlier than normal in order to get a good deal.

The impact of the cost of living crisis is a general concern for all industries, but our research has found that going on holiday is very important to 66% of people and many intend to prioritise their holidays ahead of other discretionary spends such as eating out, leisure activities or buying new clothes. This certainly seems to be what we’re seeing in the peak booking period. That’s not to say that the wider economic picture is not having an impact on how people approach their holidays. Another marked trend this year has been the growth in customers choosing all-inclusive package holidays, as customers look to ways to remove uncertainty over household budgets and fluctuating exchange rates.

So, it looks as if the industry will benefit from the significant pent-up demand that built up throughout the pandemic and this will help offset the impact of higher household bills. But it will still take some time to make good the damage caused by the pandemic.

At ABTA, we’ve been working with Government on the lessons to be learned from the pandemic – making the case that an evidence-based and proportionate response is necessary when it comes to dealing with such matters, and the importance of providing the right support to businesses.

We’ll also be focused on demonstrating the value of the international travel industry to the UK economy; highlighting that our sector contributes £80bn to the UK economy in gross value added (GVA), equivalent to 4.0% of the UK’s total GVA. We also have a strong track record of growth – and that is set to continue. Our report, International Travel: Powering the UK Economy, finds that with the right policy framework, inbound and outbound travel could outperform the average growth for the UK economy over the next five years, with inbound travel forecast to grow 20%, and outbound travel 15%, compared to forecast growth of 10.3% in the wider UK economy by 2027.

Another big focus of our work this year will be regulatory reform. We’ve recently had an update from the Civil Aviation Authority on its proposals to reform ATOL – with a call for more information from industry. We also know that the Department for Business, Energy and Industrial Strategy (BEIS) will be reviewing the Package Travel Regulations. It’s important these reviews aren’t carried out in isolation of each other. We’ll be working to represent members’ views on both of these matters.

2023 is set to be a big year for travel – a turning point in our recovery but also an opportunity to shape the future industry. We’re pleased to be working with and alongside members to help drive this forward.

Mark Tanzer

www.abta.com

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READERS' COMMENT

All comments are filtered to exclude any excesses but the Editor does not have to agree with what is being said. 200 words maximum

ABTA Spokesperson, London

ABTA will be engaging with its members and the wider industry later this month in order to provide an informed and constructive response to influence the CAA’s decision. ABTA will be keeping its members up to date on next steps.

Jim Bent, West Bromwich

Mark Tanzer is rightly optimistic but what is needed is more words on the reform of ATOL. Please explain.