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UK inbound operators confident as business improves
Inbound tour operators were feeling increasingly confident about the future of their businesses at the back end of last year due to strong forward bookings.
Latest figures from UKinbound show that in November and December 2018, 59% of members were confident about business in the upcoming 12 months, the highest rate recorded since more than a year earlier.
At its annual convention in Glasgow this week, UKinbound said 81% of businesses reported that bookings, visitor numbers or customer orders last November/December were at least similar or higher than a year earlier. This compares with 56% of members who said they’d seen an improvement at the start of last year. In November/December 88% reported that yield had remained stable or improved.
The warm UK summer, a weak pound and an increase in Chinese and Japanese visitors all contributed to the improvement.
Looking to 2019, businesses said they expect cultural experiences to be the top seller, closely followed by bespoke activities. Luxury goods and retail was ranked third most important, with activity holidays fourth and spa and wellbeing fifth.
However, businesses admitted that the uncertainty regarding the UK’s future trading relationships with the EU was a cause for concern, along with staff recruitment and retention, improving the UK’s product offering and offers for visitors, attracting visitors from new markets and currency fluctuations.
UKinbound CEO Joss Croft said:"It is encouraging that even with the uncertainty surrounding Brexit, our latest Business Barometer shows that forward bookings are strong and that there is an increase in confidence levels amongst some of our members.
"However, we remain concerned about the Government’s proposed immigration strategy post Brexit which will look to restrict employing EU nationals to those only earning over £30k. Recruitment and retention of staff in the industry is already a challenge – due in part to Brexit, and this proposed restriction could have a real impact on the industry, which relies heavily on its EU employees due to their language and customer service skills."
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
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