Dame Irene Hays, the owner of Sunderland's Hays Travel, has dismissed concerns over a º£½ÇÊÓƵ economic downturn following robust sales in recent times.
Speaking on Radio 4's Today programme, Dame Irene highlighted that the national travel chain experienced a significant surge in business towards the end of 2024 and into the early days of the new year, with customers spending more on their holidays than in previous years. This comes against the backdrop of a report by the British Chambers of Commerce indicating a drop in business confidence post-Budget, with a survey showing 55% of firms anticipate price rises in the next three months, a jump from 39% in the latter half of 2024.
Despite Labour's announcement of increased employment-related taxes in the October Budget, Dame Irene remains optimistic about her sector: "I don't see less confidence in the sector, in fact. I know it's early days in January, but we were up in 2024 by 18.4% and just looking at the early start we've had to January, we're up by 22%. So there's general confidence in the sector.
"There's an acknowledgement that there are additional payments to be made in terms of National Insurance and National Living Wage but we've been around for 45 years now and we've managed the business through lots of different administrations. All we do is understand the rules of the game and try to play it better than anyone else."
Dame Irene highlighted that Hays Travel has been experiencing a marginal upturn in average customer spend, with the Mediterranean, Egypt, and the US being favoured destinations. She noted that increased disposable income is leading people to prioritise their vacations, with a trend towards all-inclusive packages and more long-haul travel choices.
Hays Travel reported a 43% surge in profits according to its latest financial statements, and additionally made two substantial acquisitions last year to broaden its network. In October, accounts for the fiscal year ending April 30, 2024, revealed a 17% increase in total transaction value to £2.5bn and an 8% rise in turnover to £457m, reports . The group's pre-tax profits soared by 43% surpassing £73m, and operating profit climbed by 31% to £60.4m.
The Labour party, since securing victory in last summer's election, has put economic stimulation at the forefront of its agenda. Yet, recent official figures indicate the economy experienced no growth from July to September and underwent contraction in October. Shevaun Haviland, the British Chambers of Commerce's Director-General, described the current climate as "a pressure cooker of rising costs and taxes".
