SPAA Members Update 11.10.24

The full impact of Hurricane Milton on Florida will take some time to clarify, despite the 24-hour media coverage before, during and now in the aftermath of its landfall. It’s horrific – that is already evident – and our thoughts are with all those affected. Let’s hope those in reach of this and other similar extreme weather events will now get some respite, but it does seem that this is the ‘new normal’ worldwide.

Here, the week has brought the usual mix of positive and negative news. Travel demand continues high, as the very latest consumer spend statistics from Barclays demonstrate.

Meanwhile, amongst longer-term challenges faced by our travel businesses, some are still

stubbornly deadlocked. The EES roll-out (albeit with some clarification now emerging); ATOL reform progress and SAF development support, are examples. Browse through this edition and you can read more.

If you’ve been meaning to vote in the rapidly-approaching SPAA Annual Travel Awards but haven’t yet found a few minutes – the voting deadline is imminent, so this weekend is your last chance to log-in, and then look forward to another memorable evening – in Glasgow on the 31st. I hope to see you there!

More reassuring statistics on consumer spending on travel have been published this week – in the latest Barclays UK Consumer Spend report, for September 2024.

Against the backdrop of a decline of 1.7% during the month in ‘essential card spending’ (eg food and household items), expenditure on Travel was up by 7% (against an overall average of +2.7% on ‘non-essential’ card expenditure). Spending on Travel Agents was even stronger at +9.2% and on Airlines at +9.3%.

Other strong ‘non-essential’ spending sectors during September include Entertainment and Digital Content & Subscription – which suggests that amongst consumers there is still a steady determination to invest in and enjoy their leisure activities. It could be that there is an ongoing ‘distraction’ factor prevalent – in the run-up to the UK Chancellor’s Autumn Budget and in the current ‘negative’ weather and world news environment.

Whatever the motivations driving consumers, the September 2024 results offer fresh and current evidence that leisure travel is a precious commodity for people, and they are happy to place trust in travel professionals to ensure their experiences match their high expectations.

Support has been voiced this week by new TUI UK & IE MD Neil Swanson for the partnership of third-party travel agents. In addition to announcing the earliest-ever launch of TUI’s Summer 2026 programme, he also re-asserted that third-party agents are “vital” to TUI and that colleague Andrew Isherwood will continue to lead on UK & IE commercial partnerships as head of trade relations.

We welcome this re-iterated commitment from SPAA Associate partner TUI, and the new MD’s confirmation that new TUI shop openings will be limited to ‘filling small gaps’ in their estate. Not least, his comments are welcome because of the consistency they demonstrate – that’s an important factor in continuing to build trust + mutually profitable joint business, and we will continue to engage positively with TUI on behalf of all our Members.

A RISE spokesperson commented that “production of SAF is one of the fastest growing industries on the planet and demand will soon outstrip supply. In the US, EU and countries across the Middle East and Asia Pacific they are ahead of the field in bringing forward measures to attract SAF investors to their shores. We need to act now or risk losing out altogether.” The ‘Back British SAF’ campaign is urging the UK Government to bring forward the Sustainable Aviation Fuel (Revenue Support Mechanism) Bill quickly to ensure the UK can meet its target to have five SAF plants under construction by next year.

As SPAA Members know, Future Travel Coalition is arguing the case for investment by Government in SAF development and production, and against a government ‘raid’ on tax payers via increased Air Passenger Duty, or airlines by means of increased fares. As part of the UK Government’s ‘economic growth agenda’, building a strong SAF production sector in the UK would produce long term benefits for the economy – but time is of the essence.

Following up on our recent conference call with interested parties and Government, on

the twice-delayed roll-out of EES (European Entry / Exit System) an update on the likelihood of a further delay to the previously-announced launch date – 10th November – was finally published by the European Commission yesterday. The November launch has now been postponed for the third time – with no new target date suggested. Alternatives being discussed are a ‘phased launch’ of the whole scheme, or a modified scheme – airport-by-airport and port-by-port over a number of months.

While this is hugely frustrating, it’s good news in as much as pragmatism has, for now replaced political manoeuvering. The EES system will need to be resilient from Day One and as hassle-free for travellers as is humanly possible. The SPAA is keeping a close watch on progress and we will keep Members well informed.

One of a number of announcements emerging from this week’s ABTA Convention in Greece related to the current status of the long-awaited ATOL reform proposals. The CAA’s Head of ATOL Michael Budge cautioned that progress is now unlikely this year, but he is hopeful of sign-off for a detailed Consultation process in 2025. Reminded by Simon Bunce of ABTA that the position of many travel businesses has improved markedly since the project was first mooted in 2021, it was suggested that the moment for reform of the ATOL system may have passed (given that some travel businesses have already taken steps unilaterally, to ring-fence customer funds).

This all begs another question, though. Even accepting that the current position of many ATOL holders – large and small – may be improved, how many businesses are still working to reduce continuing Covid-related financial commitments? Sensible ATOL reform – easing the financial burden and workload of all licence-holding travel businesses – should not be simply an academic debate, but a ‘live’ priority.

Thursday 31st October

DoubleTree by Hilton, Glasgow

Your votes determine the Winners – so if you haven’t already done so – be sure to take part!

Agents – please cast your votes for your favourite Suppliers, share the link with your colleagues and encourage them to vote too! Associates – please cast your votes for your favourite Agencies.

Connect to the Voting Forms via the links below and cast your votes – not later than 5.30pm on Monday 14th October 2024

Travel Agent Members | click

Associate Members | click

It was good to read that easyJet’s long-established ‘Fearless Flyer’ course is set to return this month, including at Glasgow Airport. Like most of us working in travel, flying is just part of the job and second nature; and if we’re fortunate enough to be upgraded occasionally – a real pleasure.

It’s timely to be reminded that for a few of our clients, the flights can be a real ordeal; but a necessity, to enjoy quality time with partner or family. To date, it seems that more than 12,000 travellers have benefitted from the course – so it definitely fulfils a need.

We should probably be more grateful for the fact that for most of us, the greatest uncertainty we face when we check in to take to the air is whether we’ll be advised to turn left or right when we arrive on board!

In other positive news this week, the Port of Cromarty Firth (Invergordon) made the shortlist for the Port Development Award 2024 – one of the British Ports Authority’s annual award categories. As a significant host port for cruise visitors in Scotland, Invergordon is playing its part in supporting and developing a strong cruise sector, and congratulations to the Cromarty Firth team are in order!

Have a restful, relaxing weekend, #Staysafe and take care, you and yours!

All the best ~