| Journal: TWUK | Section: |
| Title: | Issue Date: 22/05/00 |
| Author: | Page Number: 8 |
| Copyright: Other |
Comment
Specialists may shine through consolidation
After Preussag’s raid on Thomson, everyone is trying to guess what the next deal will be. One thing is certain – there will be plenty more deals.The big guys are obsessed with getting bigger so they have greater buying power in resort and improve margins. All of this is not great news for holidaymakers.
Thomson Travel Group chief executive Charles Gurassa argues that the choice to the customer will increase because the combined Preussag/Thomson monster will be able to create new products and market in each other’s countries.
But that’s not actually greater choice, is it, because all the products are coming from one company.
The danger is that the medium-sized mass-market companies will be squeezed out because they won’t be able to secure beds in resort when they have to compete against the European giants.
The logic of less choice is higher prices. This may not happen immediately but have a look at the picture in a few years time.
Ironically, I think all this consolidation is great news for the specialists. They can watch the market polarise between huge European giants and small companies offering holidays away from the crowded beaches, with nothing left in the middle.
In future, true specialists should find it easier to market themselves as a quality alternative to the mass-market giants.
Jeremy Skidmore – editor