Why Ryanair pricing news isn’t all bad…
With the news breaking last week from the horse’s mouth (Michael O’Leary, no offence intended) that ultra-low fares are going to be a thing of the past, at least for the foreseeable future, there may have been moans & groans from a consumer perspective, but domestic tourism ears began to burn.
The statement “I think people are going to become much more price sensitive and therefore my view of life is that people will trade down in their many millions” rings true with most in the UK (BBC August 2022). The rise in fuel costs that is pushing up air fares, whilst also raising household energy bills and eating into people’s disposable incomes, will undoubtedly impact the UK staycation market and we as a collective of accommodation owners and accommodation software providers should look to the positive potential and how we can better accommodate those looking to getaway without going away.
Price is only one factor though with the ongoing issue of cancelled flights, widespread delays, lack of alternatives (see very well-publicised ferry travel issues) and general poor customer experience all compounding what is a very sombre view for short-haul international travel.
So what does this mean?
In a word, opportunity. The Covid pandemic taught us a very valuable lesson in that the UK has a great deal to offer to its people beyond city-breaks and beach trips – and this is something we as an industry need to take forward confidently. In March 2021 Aerospace Technology wrote that; “a GlobalData poll revealed that 43% of global respondents expect to take a domestic trip within the next 12 months. Given the continued success of the UK vaccine rollout and dwindling case rates, the UK is set for an upward trend in domestic travel.” (Aerospace Technology March 2021)
This turned out to be true with May-July 2022 bookings for our customers surpassing 100,000 in number with a value of more than £21m which reflects the same figures we saw in 2021 for the same period, during an unprecedented boom in the domestic market as we were all freed from UK Covid restrictions.
The success of our customers in 2022 presents a clear indication that consumer mentality around staycations is shifting positively – it’s down to our collective tools and knowledge to ensure this trend continues.
How?
Our goal is simply to provide software which enables our customers to convert more direct bookings whilst not missing out the bookings available through channels such as Expedia, booking.com and AirBnb, to name a few.
Our job is to educate how they can utilise the tools we provide, theirs is to execute using them effectively. It’s a joint venture and we know it.
