| Journal: TWUK | Section: |
| Title: | Issue Date: 17/07/00 |
| Author: | Page Number: 3 |
| Copyright: Other |
How Airtours is performing in each market
n The remaining shares in troubled German tour operator FTi were snapped up in a £25.4m deal but unsustainable tour operator capacity in Germany make a restructuring of the market likely.n Difficult market conditions in Germany are blamed for the”significant” losses expected from FTi this year. In the six months to March this year, the firm recorded a seasonal loss of £38.1m.
n Summer 2000 bookings in the UK are up 18% on last year with the peak season still to come. Cost savings are expected when Airtours Holidays and Going Places complete the relocation move to Rochdale.
n In Scandinavia higher brochure prices, caused by escalating fuel charges and the abolition of duty-free, has led to a drop in summer bookings.
n Belgium and France operations are to be scrapped. Its Holland business is now part of the ScandinavianLeisure Group. Poormarket conditions have led to lower selling prices coupled with high levels of discounting.
n In North America bookings for summer 2000 are currently 12% behind last year. The new management team is seeking ways to reduce the overhead cost base.
n Encouraging performance from TSi. Auto Europe achieving “excellent growth” and cruise operations are producing higher average commission rates and volumes year on year.
n The weak euro threatens profits for Costa Cruises although trading remains strong.
n New joint venture announced with Spanish hotel group Hotetur.