By Kayt Sukel on Tuesday, September 1st, 2009

According to Uptake, the travel industry is once again experiencing positive growth. This is especially true in Europe where the hotel revenue per available room is showing a strong uptick across the continent.

The value of travel. Is travel really growing again?

Despite what many are hoping will be a continuing positive trend, consumers are still stating they are looking for “value” in travel.

No one wants to give up an annual holiday

I don’t wish to be a naysayer but I think showing a slight increase in summer travel is not a trend but a no-brainer. For many, an annual holiday is inviolate. Individuals may not travel as far or spend as much money but they still intend to go somewhere during their vacation time.

This is especially true of Europeans. As my German neighbour once said to me, “I’ll give up beer before I give up my summer holiday.” I don’t know if pressed he’d actually do it but he sounded rather convincing at the time.

Give me something for nothing

So no one wants to give up their annual trip but, by the same token, they don’t want to pay through the nose for it either. Consumers want to find travel “value.” Value, of course, is a somewhat difficult term to define. It means different things to different people.

If you ask your average travel agent to define “value” these days, it usually is summed up as “give me something for as close to nothing as I can get.” With the economy still in a lurch, that makes sense. People can’t afford to let a £3000 holiday ride on their credit cards anymore.

But how low can consumers – and, consequently, the travel industry – really go?

How do you define value when it comes to travel

My questions are somewhat hypothetical but it does make me wonder. Consumers, how do you define “value”? And in what ways do you see the travel industry offering it – discounted hotel or airline rates? More inclusive packages? The use of a travel agent?

How are you making your travel pound stretch so that you can make the most of your holiday?


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8 responses to “The value of travel”

Rowen Gower | 2 September, 2009 at 11:21 am

We joined the millions of stay-cationers. It makes your pound stretch further because you dont have high exchange rates and you travel is less expensive. Also, if you take your dog you’ll probably find cheaper accommodation too as we found no-one wanted a hound in a nice pleace so it had to be good value!!

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Nick | 2 September, 2009 at 11:37 am

Darren

I disagree with travel agents saying value means something for next to nothing, late deals yes, but value no.

Value can be things like free flights or car parking at airport… to $1000 to spend on board a cruise ship. Recently I did a £6000 booking with all 3 of these extra value items. Value to most means something extra at no or little cost. If you want a bonus

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Julia | 2 September, 2009 at 12:49 pm

I define value as paying the price I see or have been quoted and told of any extra cost. Not then seeing additional taxes, flight cost, room supplement costs ect. I noticed today on a travel site that their card charges were 3.5% for credit AND debit cards. That is laughable.

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Catherine | 2 September, 2009 at 10:40 pm

We haven’t been abroad for six years because of work and being too busy but that said, if I were booking a holiday abroad now the last place I would visit is a travel agent simply because I think I could do better myself online.

I think nowadays what would prove good value to me would be find a holiday rental home abroad if I were taking family. Hotels would be too expensive and b&b type accommodation too intimate.

However were it just myself and my husband then I would trawl the internet (and prob. ta) to find the best deals.

And my good value for money would be a place I could travel to in comfort but not too expensive (Ryan Air might not be my choice), and a place where we could eat good, REAL food which was not rip off prices. Oh, and the odd bottle of well priced wine would not go amiss.

But at the end of the day (hate that saying but hey ho) value is all in the eye of the (purse) (be) holder.

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Murray Harrold | 3 September, 2009 at 4:59 am

A subject close to my heart. There is a world of difference between “cheap” and “best value”. In my experience, people do not mind paying for their holiday – be it £200 or £2,000 – what they object very strongly to, is paying anything and not receiving “value” for that payment. As an agent, over time (and contrary to what you suggest) one gets a feel for what is good value for what is being spent. For example, for an “all inclusve” for a family with kids, I consider Club Med to be excellent value. Now, Club Med is not cheap, but when you look at the standards in terms of food, facilities and child care, they are second to none. On the other hand, there are “all inclusive” holidays sold (no names!) and the “sports” facilities boil down to one ageing windsurfer, which you can have free use of on day 6 of your 7 day holiday at 03:00 – for 37 minutes, where the food is two bread rolls and a bowl of soup – and so on.

It is the same with airfares. I see fares for journeys and think “That’s good value” and other times “ruddy ridiculous”. (For example, the Star Alliance round the world fare, for the flying you get, is incredible value, so too, are the “special” Singapore Airlines disounted business class fares to Oz.) – but one has to have a bit of a “nose” (and experience) to know which is which. Of course, one’s client also has to trust that their agent knows what they are talking about as well! There are still an awful lot of very good ones up and down the country, sitting behind their counters – but the way things are going, they will not be there for very much longer. The trick is, to find them!

If you book online, chances are that your booking decision can be based on cost alone. Okay, so you can read up on hotels etc etc. though as I always say, with the internet – the internet will answer your question BUT are you asking the *right* question and are you getting the answer from the *right* person. From what I read about about review sites, the latter point is a moot one. A decision based on cost alone, is flawed. Without experience, making a choice in a field as widely diverse as travel, can be disasterous. You can wind up paying £100 for something that is, you think, cheap and worthwhile, whereas the option for £120 may be slightly different, though at the same time, offer several times that amount in terms of overall holiday quality.

The role of the travel agent has changed. The travel agencies realise that their role has changed – and have changed. The problem is, that the travelling public do not realise that the agent has realised that their role has changed and the public still think that an agent is someone to bypass, because they (mistakenly, really) believe they save the “middleman” commission. Neither has Jo Public grasped that agents have recognised that their role has changed (at least, the good agents have) and that agents earn their money by offering (keyword: offering) sound and sensible advice on how to achieve best value for every holiday pound their client has in the holiday budget. Okay, so you may pay a bit more for specific set of holiday plans that an agent has guided you towards than if you booked that specific set of plans direct – but if that work the agent has put in, increases the enjoyment value of you holiday, if you have taken full advantage of their skill and knowledge, then you should be happy and willing to pay that little bit extra with good grace. It is not a question of avoiding (good) agents; it is a question of learning how to use them.

That message, the travel agencies are not good at getting across!

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Nick | 4 September, 2009 at 3:47 pm

@ Murray your so right.

Plus the tools we have at our finger tips mean we can find better deals because we know where to look.(OK most of the time). After all we did not study 2 years to become a travel agent to not know anything.

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Nick Bartholet | 7 September, 2009 at 1:26 pm

Thanks you for this post – it’s interesting to see how different people define value when it comes to travel.

It’s interesting what Catherine mentions about looking at a holiday rental home and I thought I’d offer a villa company’s view. From speaking with our customers, we’ve found that holidaymakers are increasingly looking to book good quality holiday properties that they know will offer comfort and style for the duration of their stay. I’d agree that holidaymakers are not necessarily looking for the cheapest option, but a holiday where they’re confident that quality and service won’t be comprised.

We’re finding that holidaymakers are opting for a villa where you get the quality of any three, four or even five star hotel, but you can save Euros elsewhere by dining in more, enjoying the facilities of the accommodation and sampling local produce on the BBQ. This can sometimes be much more appealing for those consumers looking for a quality holiday at an affordable price.

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Darryl Skelton | 23 September, 2009 at 12:30 pm

Everyone has a different view on value for money. On a recent holiday in a four star hotel in spain (in winter) i paid only £41.00 per double room per night incl. breakfast and evening meal, when i checked out reviews on trip advisor some of the reviews from people were decrying that the hotel did not offer value for money!!

As a point the hotel had a seafront position, free spa facilities for guests who applied for their loyalty card and the staff were friendly enough not to charge at all for car parking which seemed really nice if not very business minded.

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