Long changes view on consolidation

(21 April 2005)

FIRST Choice chief executive Peter Long has played down the likelihood of consolidation among major industry players in the next three years.

The statement is a U-turn on his previous comments last October that the big four companies would be reduced to two within five years in a market dominated by US giants Cendant and InterActive Corporation.

Speaking exclusively to Travel Weekly, he said: “There won’t be much consolidation in the short term. I don’t see the logic; I don’t see why two large companies would consolidate and what the benefits would be.”

He admitted his viewpoint had changed in the past six months. “I have moved slightly in my view of the shape of the industry,” he added.

Industry sources agreed there would be few short-term changes although some predicted MyTravel was the most likely to be snapped up.