News

THOMAS Cook has slashed prices by up to 10% in its core second-edition 2003 brochures to stimulate demand for next summer.

The Thomas Cook and JMC programmes have made tactical reductions of between 7%-10%, while the budget Sunset programme has stuck with its net pricing strategy.

Areas that are not selling well, such as the Balearics, have taken the brunt of the price cuts as the market remains 28% down for next summer.

Tour operations managing director Manny Fontenla-Novoa said: “This is a reaction to what is going on in the marketplace and our ability to renegotiate rates.

“Some of these prices are tactical and there are more reductions in Minorca and Ibiza.”

On-system discounts for second editions are running at 25% but Thomas Cook has warned it will push these up to 30% should the market demand it.

“We do not want to start a price war but we do not want to get pushed into a corner either. We will defend our prices,” said Fontenla-Novoa.

“You need the flexibility to respond and you need to reflect the latest market conditions, but I cannot believe next summer will finish 28% down.”