Hays Travel has revealed it will focus on growing the profitability of each of its stores in 2026 as the company bids to navigate a range of rising costs, including wages, rent and energy.
Jonathon Woodall-Johnston, the group’s chief operating officer, told the agency’s annual retail conference that “driving profitability, productivity and performance” was being introduced as a strategic priority for next year.
He said some branches are performing “exceptionally well”, but added: “We’ve identified some areas where we’ve got an opportunity to further increase the profitability. It could be that we need to negotiate better on the rent or it might be that we need to introduce foreign exchange for that business.”
The company will be looking closely at every branch’s income from commission and foreign exchange, as well as costs including salaries.
Woodall-Johnston said: “It’s about how we maximise profitability through our teams. And we need to think about what we can do as leaders and managers to ensure we’re investing in our teams to get the best out of them. We want to fulfil our vision of being the UK’s most profitable independent travel agency.”
He cited the rise in the minimum wage and associated pay increases as a challenge being faced by many businesses, with rent levels another rising cost.
“Landlords were a little bit more flexible during Covid, but what we’re seeing now through the rent negotiations is that landlords are tightening up and being a little bit more robust. So we are seeing rent and rates slightly increasing,” he said.
Rising energy costs are another challenge, he noted, but the business is trying to limit their impact by introducing energy-efficient lighting and heating as it carries out its store refit programme.
“Because of the scale of Hays Travel, marginal changes make such a big impact to the bottom line,” he said.
In addition to driving profitability, productivity and performance, Hays Travel’s 2026 strategic priorities are to achieve an even balance of sales across short-haul, long-haul and cruise; to deliver exceptional customer experiences; and to revolutionise its selling systems.
Head of retail Paula Barrett told delegates: “If there’s just one message you take away from this conference, it should be about the importance of driving profitability, productivity and performance.”
