Originally Posted by
RoyHudd
It is not about capacity, that is simply naive. The business is about numbers and margins, which can work out as profit. Expect higher prices.
And anyone who thinks easyJet, Ryanair and the like are low-cost are deluding themselves.
It is about capacity. There has been way too many holidays on sale for the numbers who wish to travel.
The glut means that prices drop because companies would rather make £20 on a holiday than lose £300 that comes with having booked the accomm and nobody going into it. It also means that if there is a glut in holidays in one year, prices drop then following year people assume the same and will hold off until last minute which damages the whole market.
If instead of having 3 million holidays with only 2.6 million bookings there are 2.5 million available holidays with 2.6 million bookings then prices will stay high, there will be little or no discounting and people who wait until last minute will find not much available and then at a premium price. This translates into a lot of early booking for the following year as people panic than nothing will be available.
LC airlines are that, you may disagree but that is where industry puts them.