| Journal: TWUK | Section: |
| Title: | Issue Date: 26/06/00 |
| Author: | Page Number: 1 |
| Copyright: Other |
Long: discounting will destroy the industry
Report by LIZ BIRD
First Choice chief executive Peter Long has attacked widespread discounting, claiming it is destroying the industry.His outspoken comments come as the industry is struggling to shift capacity for the crucial July and August booking period.
Long said discounts such as Airtours’ 15% off all brochured holidays until October 31, along with the continuous discounts offered by all the major operators since January, was sending out the wrong message.
“We spend all this time improving the product and are then selling on the price message alone,” said Long. “We will live to regret it as an industry. Why extend your discounting right through the summer?”
He said First Choice, unlike rivals, did not take part in across-the-board discounting but preferred tactical offers.
St Andrews Travel managing director Andrew Dickson welcomed Long’s comments.
“It is about time that one of the industry leaders spoke out. Somebody at last is saying that discounting is ridiculous,” he said.
“As soon as one tour operator discounts, the rest follow. I watch travel agency staff running around Bolton looking at what the opposition is doing and then changing their prices. If, at 10am, Lunn Poly has an advantage, 10-15 minutes later they have lost it again.”
He said early booking discounts and low deposits don’t work because the customer now knows it will be cheaper to wait.
“Instead of giving agents 25% commission why not give us 15% and give the customer the best price when brochures first come out? We are selling late holidays for £149 and flight-onlys for £49 – nobody is making any money on that.”
He said bookings had started to pick up for this summer since England was knocked out of Euro 2000 by Romania.
Cathedral Travel principal Gerry Standley said tour operators should reward early bookers with added-value items such as upgrades.
Airtours Holidays and UKdistribution managing director Richard Carrick defended its policy.
n See pages 2 and 8
Misleading: Long believes discounts are sending out the wrong message