COMMENT by Jill Gardner, commercial director at Hays Travel

I struggle to believe that a year has passed since the failure of the XL Leisure Group. Unfortunately, many clients are still waiting for refunds, including some of ours at Hays. I just hope that the lengthy and complex process that our clients have had to go through to make a claim, for something beyond our control, has not damaged our reputation as travel agents.

It is very difficult for us as agents to understand the complexity surrounding these claims, let alone expect our clients to understand. Our team at head office continues to take a large number of calls on a daily basis, seeking an update on the status of their claims and where their money is.

As the dreaded winter trading months approach, I hope that we don’t see the much-speculated failure of more businesses – operators or agents.

Unfortunately, the state of the market over the past year, along with the next few cash-strapped months, means we will inevitably see more casualties. The need for a definitive outline of where responsibilities lie in the event of a failure is now well overdue, and I’m sure would be most welcome by agents.

The need to manage cashflow effectively is more important than ever and internal controls in times such as these are even more essential. I am sure that a lot of agents are buoyed by the surge in late bookings, but this is a short-term cash-management boost. The need to prepare for the winter months should have started way before now and those businesses that have not forecast a worst-case scenario this winter may find themselves exposed.

Booking trends have changed so much over the past two years compared with what we are used to seeing in the industry. At Hays, we have experienced an extremely late surge in bookings over the summer – the latest we have ever experienced. Clients seem to be prepared to wait to book their traditional package holidays, whereas in the past, summer package holidays were booked months in advance.

We are also, however, seeing so many more niche agents entering the market, which is fantastic. The majority of new Hays Travel Independence Group members seem to be carving out a specialism – and succeeding at it.

Competition is fierce in the mainstream market, and with pressure on margins, our members in their niche markets are succeeding in bucking the trend.

I have been surprised, encouraged and inspired by the enthusiasm and originality of some of the niche agents that have joined Hays this year.

It seems that in times of pressure such as we are now experiencing, innovation and the fight for survival step up a gear.


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