Search:  Travel Weekly   Travel Industry
Log on / Register

News

operators prepare to discount heavily for June

(26 April 2002)

WORRIED operators are ready to slash prices if sales do not pick up over the World Cup period.

The traditionally slack time between mid-June and mid-July is reported to be particularly bad as football fans opt to stay at home to watch England on television during the competition, which runs from May 31 to June 30.

Some operators have been accused of not cutting enough capacity to traditional summer-sun destinations, exacerbating the situation.

Industry figures suggest clients have been attracted to cheap end-of-May deals allowing them to take advantage of the long weekend and get back home in time for the big kick-off.

Avro commercial director John Fitz-Gerald said: “There is always a trough from mid-June to mid-July and this year is no different. A number of big operators have over-committed in June, as they always do.

“Thomson took capacity out of Florida but has added it in Tenerife. Capacity in Europe has gone up this year instead of down,” he said. “Palma will be a bloodbath this summer.”

But Fitz-Gerald predicts a boom if England is knocked out of the World Cup early. Sales leapt by 30% in the week after England’s exit from France ’98. Cosmos commercial director Stuart Jackson agreed the trade will be nervous while England remains in the competition.

One agent, who asked not to be named, said: “Sales are slow and people are buying last minute for May and June. In terms of capacity during June I’ve heard some people are doing well. Discussions I’ve had suggest First Choice is selling okay but Airtours is struggling.”

Another industry insider blasted the big operators for not cutting enough capacity.

“Thomson and Airtours are committed to their flying programmes over 26 weeks and this leaves them exposed. They have not profiled the capacity cuts like other operators,” he said.

Thomson flight-only prices for the end of May lead in at £89 return to Minorca, although big discounts for June are not expected for another couple of weeks.

TUI UK commercial director Derek Jones defended the operator. “We are not seeing any signs England being in the World Cup is slowing sales for the later half of the month. We did not add any capacity to specifically target the Golden Jubilee holiday.”

JMC sales director Ian Derbyshire said June had sold well after Christmas but had performed poorly since Easter.

“There are tactical deals around for June, as always. We’re waiting to see what happens in the lates market,” he said.

The extended bank holiday at the beginning of June is offering operators and agents hope, although consumers are booking late.

Cheapflights.com manager holidays and short breaks Liz Faherty said: “Sales for the bank holiday weekend have gone through the roof and we do have deals on our website.”

First Choice and Airtours were unavailable to comment as Travel Weekly went to press.

 

John Lavabre