| Journal: TWUK | Section: |
| Title: | Issue Date: 19/06/00 |
| Author: | Page Number: 1 |
| Copyright: Other |
Poor sales prove to be a further headache for operators
Discounts encourage late-booking mentality
Dire start for 2001
Report by STEVEJONES
THE INDUSTRY has suffered a dire start to summer 2001 as huge discounts for this summer and the axing of zero deposits have sent sales into freefall.Bookings are down around 28% on the same time last year, with operators struggling to inject any life into the market.
Some sources put the air-inclusive market down 35%.
The dismal figures for next year, which follow concern over winter sales, is a further headache for operators.
They already face being deracked by some independent agents following the dispute over direct-booking information contained in 2001 brochures.
Industry observers blamed operators themselves for installing a late-booking mentality among customers.
“One multiple has a poster in its window offering 40%off this summer’s holidays and right next to it a poster is offering 20% off next year,” said one source.
“Operators want early bookings but this is sending out entirely the wrong message.”
Retailers have also been forced to abandon the popular ‘buy now, pay later’ deals after customers cancelled bookings and chose cheaper alternatives when discounts began to escalate (Travel Weekly March 20).
Going Places and Travelworld managing director Terry Fisher said: “It’s inevitable that with so much concentration on this summer, the focus goes off 2001 and we’re all suffering.
“When the discounts are so big for this summer, there’s not much incentive to buy for next year. People think 2001 will get cheaper. We’re about 20% down.”
Unofficial figures also show Thomson down 20%, Airtours down 15%, First Choice down 39% and JMC down 43%.
Cosmos sales and marketing director Paul Riches said: “It is not catching the imagination of the public whatsoever.
“But bearing in mind the level of discounting inJanuary and February it’s not surprising.
“How can we possibly offer 10% off next summer’s holidays when customers are being offered discounts of 40% on this summer?”
First Choice sales and distribution director John Wimbleton added: “It’s early days and difficult to see any trends.
“But it has been slower than normal, partly because deposits have gone up.
“The low or zero deposit was an attractive offer. But at least the cancellation rate will drop dramatically.”
Despite the downturn, operators are unlikely to alter their discount campaigns when second-edition brochures are launched next month.
Everything must go: retailers are continuing to advertise massive discounts off this summer’s holidays at the expense of next year’s sales