Staycations; They’re so last year! Or are they?

Thomas Cook are claiming that the surge in UK holiday sales to British consumers in 2011 is now history. They claim that the cost of a UK holiday cost is the highest in Europe and that the discounts the Company are offering on foreign destinations will prove to be irresistible.  We beg to differ for the following reasons;

• Comparable spending power. Whilst the Euro remains strong the relative cost of dining out is just as high as the UK.
• Higher travel costs. Tempting savings being offered on villa accommodation have to be offset against the charges for airport parking, car hire and flight surcharges/taxes.
• Logistics. The reduction in disposable incomes can be managed by taking more frequent shorter breaks for the same spend as a 2 week holiday. It is much easier to do this within the UK.
• Travelling time.  Having to arrive at an airport 2 hours prior to check-in is no joy. Nor too is languishing in a stationary queue for the security check. Travelling to Devon and Cornwall on the M5 on a Saturday afternoon in August can, admittedly, be slow but at least you have the option of leaving home at the crack of dawn to beat any congestion.

From our various conversations within the sector, bookings are expected to come in very late in the day. We anticipate that the  demand for accommodation will hold up to 2011 levels but the average spend on eating out and on local attractions will be squeezed. The greatest impact of this trend will be felt by larger holiday parks with restaurants, shops and pay as you use leisure facilities.