| Journal: TWUK | Section: |
| Title: | Issue Date: 05/06/00 |
| Author: | Page Number: 8 |
| Copyright: Other |
Comment
Will operators keep pricing on the level?
W e’re getting to that time of year again when tour operators’ nerves are starting to positively jangle.As we all know, an awful lot rests upon the performance of July and August and right now that’s in the balance.
Most operators expected June to be poor because many people will stay at home to watch the European Championships. The big question is whether the discounting will roll over into the peak months.
So far, the picture is a mixed one. The bottom has fallen out of the Greece market for June, according to our columnist Noel Josephides (Travel Weekly, May 29).
Airtours has put on a lot of capacity this year and must be feeling nervous but Thomson and First Choice seem to be in a reasonable position and JMC is verybullish about June and the rest of the summer.
Whatever the true picture, operators have got to try to hold their nerve and resist discounting too quickly for the peak season.
There are already some signs of deals for July and August and they can quickly mushroom with one operator following another in an attempt to get rid of capacity.
Tour operators’ profitability for this year hinges on the competitive nature of the major players over the next few months. In this market you can never bet against a price war but given the state of the market, there is a good case for common-sense pricing this summer.
Jeremy Skidmore – editor