Booming outbound sales show no signs of stagnating for southern Gran Canaria heading into summer for the UK market despite a further rise in interest rates last week which increased costs for households, with two Atol among the top five reporting "strong" bookings and a third boosting its ATOL license in the UK. The Bank of England raised interest rates by 0,25 points to 4,5% last week and revised upwards its inflation forecast, with a further rate hike now expected.
Virtual operator On the Beach reported “significant top-line growth” year-on-year after “record sales” in 2022, while TUI hailed the UK as its “most advanced” market with summer bookings up from 10% in 2019. However, a leading industry consultant warned that “we have been here before” as larger groups build up capacity. Martin Alcock, director of Travel Trade Consultancy and former senior Atol analyst at the CAA, said: "I'm pretty sure we're at the highest aggregate Atol number ever, certainly the highest in the last 10 years."
Booking.com has added 280.000 to its Atol since April, surpassing two million and making it the fourth largest license holder, after adding 666.000 since the September 2022 renewal. Jet2holidays added more than 500 in February, while Loveholidays added 000 594 and On the Beach 000 to their Atols in the March renewals. He pointed to “a mismatch” between larger companies and the rest of the market, where capacity has remained more stable, and said: “It is harder for smaller companies to access finance. Many see the demand but cannot meet it. “The phones are ringing, but people can’t get through to them.”
Simon Cooper, outgoing CEO of On the Beach, told British media that premium holiday bookings were up 20% year-on-year and a 47% increase in value. The figures, in half-year results to March published on Tuesday, more than offset a 25% drop in traffic "at the value end" of the market, with total passenger numbers up 11% year on year.
Cooper forecast no shortage of capacity in the lates market, despite strong sales to date, reporting "significant unsold bed and seat capacity." He insisted: “There will be enough seats and beds for those who want to travel in the next three or four months. People booked well in advance in reaction to the cost of living or waited to see where to go. “We are seeing declining seat price inflation and a higher volume of unsold seats than expected.” TUI has forecast "a strong summer" and announced the opening of 21 new retail branches in the UK this year, with three already open in Liverpool, Oxford and Banbury.
