Czechs plan holidays even in times of high inflation. Compared to previous years, however, due to savings, they more often choose tours outside the main season and choose their services more carefully. “What affects the price in real time are fuel surcharges, but we do everything to ensure that the increase is minimal,” says the director of the Blue Style travel agency Imed Jeddai in an interview with Aktuálně.cz. According to him, it is especially expensive in Europe.
Last year was one of the strongest years ever for major travel agencies. The four strongest players – Blue Style, Čedok, Exim Tours and Fisher – exceeded the record milestone of 25 billion crowns. According to Jeddai, this season should be another strong notch. “Learning just from last year’s strong season, we have increased capacity in all the destinations we offer to clients, and we have done really well,” says Jeddai.
The group of “holiday favorites” has not changed for several years. Among the most popular destinations are the Greek islands, Turkey, Tunisia, Egypt and Bulgaria. According to Jeddai, however, destinations where it is possible to combine relaxation and activities are increasingly coming to the fore. “Such destinations clearly include the Portuguese island of Madeira, the Greek island of Lefkada, the Italian Calabria, the Cape Verdean Sal, but also a cruise on the Nile or a tour of Morocco or Oman,” mentions the head of Blue Style.
Imed Jeddai, head of CK Blue Style | Photo: Blue Style
Households have been dealing with price increases for a long time, and thus save significantly. How is this reflected in Czechs’ desire to go on vacation?
The buying behavior of clients has definitely changed. In the past, i.e. covid years, demand was extremely accumulated in a very short time before leaving for vacation. Clients were afraid of longer-term planning, which was the reason for the big problems of some travel agencies and agencies. This is no longer so significant for buying a holiday, but the planning of spending a holiday is gradually changing.
How?
In order to save money, there is an increasing interest in staying outside the main summer season, which mainly belongs to families with school-aged children, more attention is paid to the categorization (number of stars – editor’s note) of hotels and the services provided, as well as to the length of the holiday.
Can it be said that with the financial situation of households, the interest in holiday installments would grow?
The interest is constant, it is not a significant jump increase or decrease. The product itself is really just another option to pay for your vacation, and is chosen by clients based on an individual decision.
And how did pan-European inflation, also caused by the war in Ukraine, affect this year’s tour prices?
In our segment, contracts are concluded well ahead of time. Prices for the current season were agreed upon before the outbreak of war. What affects the price in real time are fuel surcharges, but we do our best to make sure that the increase is minimal, if it has to happen at all. It is also quite logical that prices related to inflation and energy will be more pronounced in Europe than, for example, in destinations outside the EU.
The Czech koruna is currently strengthening significantly. How do you estimate that its development will be reflected in the summer holidays?
The strength of the koruna is not immediately reflected in the price of the entire stay package, it is more about spending on the spot or exchanging currency now if you are going abroad later. This has an immediate effect on the overall cost.
Is the attitude of the Czechs changing in viewing the conditions of tours? Examples can be travel insurance, the possibility of cancellation and the like…
The global coronavirus pandemic has strengthened clients’ beliefs about the need for insurance. But it’s not like they didn’t take insurance before. But we are already behind this big crisis and our clients do not discount the need for insurance, which covers them even if the trip is cancelled.
If you had to describe a typical travel agency client, who would it be?
The most represented group are families with children of different sizes. But we also have a large group of so-called “emptynesters”, i.e. clients aged 40+, whose children have already left the family nest and they are setting off to discover the world on their own. We also have a represented group of seniors, young families under 30, but also young people still studying, who go to the resorts to relax, for example, after exams.
A number of Czechs got used to planning their vacation more along their own axis. According to Czech statisticians, last year was even a record year. Are you finding yourself losing clients as this trend grows?
On the contrary. We are experiencing the second record season in a row. Based on the negative expectations of economists and the situation in the world, I expected a slightly milder season, at most the same as last year. We have already sold almost 80 percent of last year’s capacities, and we are still before the main season itself. Having learned from last year’s strong season, we have increased capacity in all destinations that we offer to clients, and we have done really well.
Last year, travel agencies reported huge interest, and in that context there was a limited offer of last-minute tours, i.e. those bought at the last minute. How is it this year?
You are right, last season exceeded the “pre-Covid” season, i.e. 2019, by almost three times. Last year there was such interest in the holiday that the space for creating a last minute offer was very limited. But interest in her still persists. Its advantage is clearly the price and the possibility to fly almost overnight. A certain type of traveler likes this freedom, and our regular clients choose from the last minute offer even if it is, for example, their second or even third vacation of the year.
And what about first minute tours, i.e. tours bought more in advance?
Each type of offer has its clear advantages. At first minute, we are talking about the widest selection of destinations, hotels and services, discounts for children and adults, a low deposit and subsequent gradual financing of the holiday or the possibility of changing for free up to ten days before departure. I can confirm for us that we already have twice as many applicants for this season as there were at the same time last season.
What countries are the most interested in? I assume they are regulars, but do you follow any “jumpers of the year”?
You are right that the so-called regulars are leading. These are the Greek islands, Turkey, Tunisia, Egypt and Bulgaria.
However, we are now observing a great and ever-increasing interest in destinations where it is possible to combine your stay with activities such as trips to the country’s culture and history or water sports. Such destinations clearly include the Portuguese island of Madeira, the Greek island of Lefkada, the Italian Calabria, the Cape Verdean Sal, but also a cruise on the Nile, a tour of Morocco or Oman, which we provide for our clients with a Czech-speaking guide.
Did people start shopping more online after covid? And do they come to you directly, or do they more often use sales through partners?
The share of sales at branches is “pulled” at monthly intervals by the share of online sales. Both channels are very strong, as well as sales through our commission partners, i.e. travel agencies. It might seem that the global pandemic has transferred all operations and purchases online, but many of our clients like to go to branches.
