COMMENT: Happy new year?

Gary Jacobs, from marketing company Fox Kalomaski Crossing, shares his views on what the travel industry must do to benefit from the air of optimism in 2014.

"If you believe in all the forecasts put out at the end of 2013 by some very highly respected organisations indicating that 2014 is going to be rosy, then it looks like we’re all in for a happy new year.

The British Chamber of Commerce says its survey of almost 8,000 businesses revealed that the key economic indicators are now higher than they were before the financial crisis hit in 2007. Sterling has been cited by currency trading house BK Asset Management as one of the main preferred currencies for 2014. UK house prices are set to rise by up to 8% in 2014. The SMMT predict new car registrations will remain stable after a strong recovery in 2013.

VisitBritain predicts new heights in tourism will be reached in 2014 resulting in record-breaking spend, with arrival figures topping 32 million. And a few of our high street retailers are succeeding in matching consumer confidence in their offers by notching up strong end of year sales.

With predictions from the advertising industry suggesting that 2014 will see an increase in advertising spend to £18.7 billion – the highest figure recorded by the Advertising Association/WARC Expenditure Report since it began in 1982 – what prospect does the travel industry have in achieving its fair share of consumers’ disposable incomes?

Consumer confidence is reported as getting stronger and, whilst more people are saving, it is highly likely that they are putting spare money away rather than spending it because there are still a few concerns that a full recovery may stall. Rising inflation and the prospect of increased interest rates – not if, but when – will undoubtedly be impacting on spend.

Competition for share of wallet is going to be fierce. With optimism in the air and the job market picking up, big ticket purchases will be back on the agenda along with self-indulgent personal rewards following living through the worst recession since the 1930s. So, whilst a holiday is a deserved annual right for most Brits the investment will have to be weighed against many other purchases on wish lists for the year.

Companies working in the travel trade must ensure that they are competing effectively against the plethora of consumer brands and categories looking to attract consumer spend, and to ensure that their voices are heard. This doesn’t necessarily mean outspending the competition but it will mean creating effective strategies to engage consumers at the right time and in the right place with relevant messages supported by strong apparent value for money propositions.

There is light at the end of the tunnel and it will be a huge sign of a recovery, but be aware of the amount of competitive traffic hurtling towards that same tunnel opening and that smell of money."