UK IT/Holiday market still in decline

[Buster the Bear]

From the Travel Trade:

TOTAL SALES by the end of January for this summer were 15 per cent down on 2003, according to the latest booking figures leaked to TTG.

The ACNielsen figures show sales in January alone were one per cent lower than in January 2003, even though the Iraq War was looming last year.

First Choice sold three per cent more holidays this January than last and Thomas Cook 10 per cent more, but MyTravel was 15 per cent down and TUI UK three per cent down.

The average selling price last month was £576, up £37 compared with January 2003.

First Choice’s average selling price went up £27 to £531, MyTravel’s was £5 cheaper at £488, Thomas Cook made an extra £53 at an average £548, while Thomson managed £566, up £55 on last year.

Since programmes went on sale last May, operators have received 18 per cent fewer bookings from high street agents than in the same period the year before, and four per cent fewer through direct channels.

In January, however, sales through agents increased by two per cent year-on-year, while those through direct channels fell by eight per cent.

Competition was also stiff between the multiples on the high street in January.

First Choice Retail outlets booked 13 per cent more passengers, taking their market share from 5.9 to 6.7 per cent.

Sales at MyTravel’s Going Places shops fell fractionally, taking its market share from 11.6 to 11.5 per cent.

Thomas Cook shops booked nine per cent more passengers, taking its share from 11.8 to 13 per cent.

TUI UK’s outlets made 15 per cent more bookings, taking its share from 11.5 to 18 per cent.

The Co-ops made three per cent more bookings, taking their share from 11.1 to 11.9 per cent.

Independent agencies were the big losers, probably because they did not advertise heavy discounts. They booked 22 per cent fewer customers, and their share dropped from 15.9 to 11.9 per cent.

Figures for bookings in January through direct channels showed the Co-ops up 48 per cent year-on-year.

Bookings for direct operations were five per cent up at First Choice, 35 per cent down for MyTravel, 37 per cent up at Thomas Cook, six per cent higher at TUI UK and 18 per cent down for independents.

[MerchantVenturer]

It would be interesting to learn the breakdown of these figures into destination areas in order to estimate whether it is the low cost airlines with their 'do it yourself' holidays having the major adverse affect.

I wonder how bookings to the places where loccos don't fly to are standing up, the likes of The Canaries, Greek Islands, Turkey, Cyprus and North Africa.

I have noticed in recent years, certainly at my local airport (BRS), more weekly summer charter/IT flights to places not often associated with the smaller regional airports, eg Volos, Brescia, Chania, Pisa, Santorini, and this year there are new weekly flights advertised to Calvi, Varna, Split, Kavala and Olbia.

Perhaps this is one way forward to try to counteract the influence of locos by providing 'new' destinations for a clientele that has 'done to death' the regular sunspots and is looking for something different and doesn't want to flog across country to the major airports.

Or perhaps BRS is fortunate in having such a large proportion of well-off pensioners and others with high disposable incomes in its catchment area, and such a strategy might work there but not everywhere.

Of one thing there would seem to be no doubt, holiday patterns are changing and it is up to the industry to get ahead of the game.

[055166k]

Mr. and Mrs. Joe Public probably work very hard all year to afford their couple of weeks in the sun. Maybe they've gotten a little cheesed off when year on year they see the price of their hard-earned holiday slashed progressively as departure date approaches.......even worse on arrival to find the "plonker" tribe enjoying the same luxury at even less cost in some kind of bizarre lucky dip. The LoCo's allow a strange kind of fare honesty and opportunity to personalise one's holiday.....and in daylight.

[IB4138]

The local press on the Costa del Sol has reported concerns amongst hoteliers regarding dropping guest numbers. At the same time, what is called "residential tourism" is growing. This is the number of visitors to the coast who either own their own holiday homes or rent villas/apartments and make their own arrangements. Remember how mainy people have bought timeshares when on a package holiday here, over the last 15 years.
It is not surprising therefore that the locos out of Malaga are reporting increased passenger figures, with increased frequencies, new routes and operators also on the up, whilst package tour visitor figures are down. My daughter worked for one of the major operators last year and their biggest throughput was for last minute, mainly accomodation allocated on arrival customers...ie the high discount customers.
The down side to this is that some irk decided to put back the Malaga airport expansion and the fears are that this will now not come soon enough.
Malaga showed an increase of 10.5% in passengers for 2003 (11.5 million) compared to the previous year. It was estimated that the pax figure would not have risen to 10.5 million until 2005 and 15 million until 2015. Both these estimates were way out as 13 million pax are expected to be using the airport by 2005.
There is supposed to be a new terminal, new runway and increased parking facilities. So far only the new control tower has been built.

[wheelbarrow]

How can things be getting better at MYT? They appear to be selling holidays cheaper than last year AND their maket share has decreased if this article is to be believed.

What is happening? Anyone got any idea?

[aaaaa]

I have just seen an article in the last couple of days, it might have been in the FT, that confidence is on the increase in the IT market and that some large investors are starting to look at the industry for future investments. The general feeling is that people are fed up with all the scare mongering etc and are going to get their holidays in spite of the press reporting every little security problem - people are learning how to live with it, no matter what.

Also saw last night on BBC and ITV teletext, that Virgin were increasing their trans Atlantic capacity and are to recruit 1000 plus staff, including cabin and flight deck crews.


My Travel are trying very hard to sort themselves out and restructure so hope that is good news as well.

A feeling of optimism is begining to emerge - lets hope it carries on and lets encourage it.

:ok: :ok: :ok: :ok: :ok:

[QAR ASR]

Whats the deal with the MyTravel bond this year?

Has it been paid? Can they afford it? etc

[TOPFLIGHT]

Mytravel has slashed capacity,reduced aircraft units and has cut many costs,basically not as many holidays to sell so not to get left with loads to sell at low prices come the end of the season !

Good luck to all at MYT for summer 04 !

[Wycombe]

The IT industry in this Country (in fact, the holiday industry in general) also needs to wake up to the fact that many of us refuse to be ripped off for being conscientious parents and not taking our kids out of school (ie, in September) to get a holiday for half the price it is in August :mad:

Prior to my kids achieving school age (they started this term), we took our last 2 family holidays in November and went to the Carribean - no more expensive than going to a good standard hotel/resort in the Med/Canaries in August.

I simply refuse to pay £3k for a holiday that would cost me £1.5k a month later, and I'm sure there are many like me.

The UK Govt are considering introducing fines for parents who take the kids away during term-time - at £100 per child, it's a cheaper option!

[763 jock]

That'll be the same UK Government that gets a 10 week summer recess to take their kids on holidays then! It would be far better for holiday makers if half terms etc were "staggered" so that the peaks and troughs are levelled a bit. As far as MYT are concerned, there was virtuallt nothing left unsold last week. :ok:

[WHBM]

It would be far better for holiday makers if half terms etc were "staggered" so that the peaks and troughs are levelled a bit
Yes, and it would have a notable impact on the IT market and airline demand generally, so is relevant.

Unfortunately attempts to do this are stymied by the fact that many people have organised their lives around the current situation. So there are parents who have children in different schools from different education authorities, who would not be able to holiday together, and a surprising number of teachers who live and whose own children go to school in another authorities area, who if the coinciding holidays were to change would have to resign their jobs.

You can tell I use to go out with a teacher, can't you! And I tell you it was no joke paying top whack to go away at half term, flights all full, only to meet in Spain hordes of the British kids she was trying to get away from !

There is a small element of stagger in the summer, where Scotland and Northern Ireland take their holidays a couple of weeks before England, and some of the IT operators do switch their flights around to favour Glasgow and Belfast in July, and the smaller English points like Liverpool in August.