2004: What a year! Comment by J.Skimore

As 2004 draws to a close, Jeremy Skidmore asks, what kind of a year has it been for you?

Some agents and operators have adapted well to the new environment, selling through the internet and putting together their own packages. Others have not made any significant changes to their businesses and have at worst failed, at best kept their heads above water.

Many years ago I got sick of hearing people trotting out that old phrase at conferences – if you don’t keep changing, you go backwards – but it’s never been truer than in 2004.

So what can we expect of 2005?

More of the same undoubtedly. Next year will be a brutal trading environment, with more intense competition than ever before. And in that environment, only the strongest survive.

High street travel agents, particularly those which have done little to make their environment attractive to customers, are looking increasingly vulnerable. I make a point of looking in every travel agency I pass and rarely see many busy shops. Of course, Christmas is not the time for buying holidays and there will be the usual New Year rush, but the general trend away from the high street will continue.

But shops which are modern, dynamic, interactive and exciting can attract customers. Ipods are the easiest thing to buy over the Internet, but the new Apple shops in the UK and the US are full of people because they are fun to be in.

Everyone expects online providers to continue growing, but not all of them will be successful. It’s not enough to just advertise hotels and flights on the Internet. You have to offer something cheaper or better and there are so many of them around that will not prosper.

Cruising is one of the few areas experiencing a boom and anyone who has a niche selling good value cruises could do very well in 2005.

The demand for higher quality is also set to continue, so those operators who can really deliver should be able to charge a decent price for their holidays. We may want a no-frills flight and a cheap hotel for a quick weekend break, but increasingly we like a bit of luxury on our main holiday.

Many of the major operators who have acquired specialists over the past few years have stripped out all the extras which made those companies special in the first place and customers are demanding a return to good old-fashioned service from firms prepared to go the extra mile.

Operators and agents which do that can look forward to 2005 with optimism.