| Journal: TWUK | Section: |
| Title: | Issue Date: 26/06/00 |
| Author: | Page Number: 5 |
| Copyright: Other |
Capacity
Endacott predicts bun fight as multiples hog beds and seats
SPECIALIST operators face a tough future as charter airline seats and beds in key resorts are swallowed by the vertically integrated groups, Urbanweb managing director Steve Endacott predicted.He said they will also need to increase their direct-sell business as pressure grows on their distribution.
Speaking in Las Vegas at the Institute of Travel and Tourism conference, Endacott said: “The biggest issue is airline capacity. As the major groups add capacity to the requirement of their tour operations, less capacity will be available for the small operators to play with.
“There will also be a bun fight over beds. Small players just don’t have the muscle to compete. The storm clouds are gathering.”
They will also have to pay increased commission as pressure grows on racking space, forcing them to go direct to the public, added Endacott.
“It’s a nasty market without distribution,” he said. He painted a rosier picture for independent retailers, however, as they receive greater commission payments and start being courted by the major groups who don’t have enough distribution to sustain their tour operations.
“Directional selling among the major groups will also mean independents are the only retailers offering a wide range of products,” he said.
Turning to e-commerce, Endacott said start-up Internet companies will launch their own tour operations as they are continually starved of product.
And he warned operators not to be complacent.
“Dot coms may come back and bite you,” he told delegates. “Travel brands are also weak and non-travel brands will start entering the market.”
Endacott: warned specialists faced a difficult time over airline capacity