I agree that the traditional package holiday is going/has gone. However I do think the package holiday per se is still very much with us, albeit in a different form.
The choices we were presented with at the advent of lo-co were very attractive and promising. The idea of buying each component from a different provider was supposed to increase our choice and drive down prices through increased competition.
However, I am not convinced that this is how the majority of people are booking their holiday: they are still using a single supplier for most if not all of the pieces, probably because it is easier. Also because the 'Big 2', i.e. EZY and FR use clever marketing techniques to keep people on the website and persuade them to book there and then, or to at least consider their offerings if we decide to book later. As stated, the flexibility in duration that daily services provide is a huge selling point for all manner of travellers. TCX & TOM need to innovate to capture peoples imagination and get a piece of the action. They also need to be less prudish about chasing business. FR in particular have no qualms at all about pursuing the passengers £/€ at every opportunity.
TSR2
Can understand the numbers are down; the mergers of TCX & MYT and TOM & FCA and the loss of XL, etc, would have had a fair impact on the charter programme. But I wonder how many of these lo-co pax are travelling on a 'package' without realising it?