News

THE Big Four tour operators have been branded lumbering dinosaurs who face extinction if they do not adjust to changing consumer demands.

Delegates at last week’s Advantage Conference in Valencia heard how demographic changes and the trend towards independent travel are making industry staples such as fixed departures and single supplements unsustainable. Much of the problem hinges on the fact the industry has failed to find a viable alternative to inflexible viewdata.

Thomson national sales manager retail Jeanne Lally said: “I would love to wave a wand over the technology, to develop a tool that allows us to manipulate the duration of a holiday, but we are constrained by systems.”

Genesys travel technology consultancy senior partner Paul Richer said the Big Four had to develop the technology to respond to changing demands - something they promised to do at last year’s ABTA Convention.

“If Thomson wanted to sell flexible packages, it would have developed its systems to do so. I do not think technology has any limitations - the will is lacking to make the investment,” he said.

Another technology consultant agreed. “The technology of vertically integrated operators renders them unable to deliver real choice and makes them look like dinosaurs.”

But JMC sales director Ian Derbyshire disagreed. “As demand grows, operators are becoming more flexible. Viewdata is limiting but it depends on what your reservation system can offer,” he said.

Despite research indicating 41% of consumers prefer self-packaged holidays (Travel Weekly April 8), Lally pointed to the rise in package-holiday sales as evidence of continuing demand.

First Choice independent travel division managing director Nigel Jenkins said while there was a move away from the traditional package towards greater flexibility, people were still buying leisure products.

He said: “We are looking at how we offer flexibility. This means reviewing our systems, distribution channels and the way products are contracted.”

But Bales Worldwide managing director Mandy Nickerson said consumers are demanding tailor-made holidays. She said: “When we started, people thought they were brave to go abroad. We need to cater for the backpackers of 30 years ago who said ‘the next time we come here, we’re going to stay in that fancy hotel’.”

Airtours Holidays managing director Seamus Conlon denied the package holiday was facing extinction. “It isn’t just about putting the flight and hotel together, it’s the kids’ clubs and everything else,” he said.

Meanwhile, Richard Scase, professor of organisational behaviour at the University of Kent, revealed there will be 3.4 million single-person households by 2016, prompting marketing guru Ross Smith to warn single-person supplements would become untenable.

But Lally said the fact hotel beds are contracted on a per room basis meant operators would continue to pass that cost on to lone customers.

Ironically, Airtours has flagged up ‘single family’ offers as part of its 2003 summer brochure launch. The move coincides with the unveiling of MyTravel’s new pay and rewards package for staff, aimed at dragging retailing ‘out of the dark ages’.