| Journal: TWUK | Section: |
| Title: | Issue Date: 24/07/00 |
| Author: | Page Number: 3 |
| Copyright: Other |
Industry confidence returns as summer 2000 sales increase
Trade optimistic after summer prices surge
Report by STEVEJONES
A SURGE in bookings and rising prices have created widespread optimism in the trade as operators enter the critical peak season.Sales volumes are increasing but more crucial is the almost daily rise in prices with late deals between £30 and £50 higher than the same period last year.
Operators and agents have reacted with relief at the encouraging early signs after previous predictions of a disastrous summer 2000.
Urbanweb managing director Steve Endacott, who had earlier warned the season would be a repeat of 1995 when overcapacity destroyed the market, admitted sales had significantly picked up over the last 10 days.
“I got it wrong,” he said. “Operators have managed to hold their nerve and prices are rising daily. It is a game of bluff between operators and customers and it only takes one supplier to cut prices before peak-season profits spiral down.
“It would appear the appalling UK weather has meant that customers can hold out no more and are now booking strongly.”
JMC sales director Denis Wormwell: “We had a good weekend and prices have hardened. You can never really tell what will happen until the schools have broken up.”
Thomas Cook commercial director Mike Beaumont said: “Prices across the board have picked up considerably with fares to Greece and Turkey rising from £169 to £219 for a week.”
Operators reported an increase in late-selling prices of up to £50 compared to last year.
Cosmos sales and marketing director Paul Riches said: “The indications are that we are heading for a reasonable year but we should not get carried away. There is still quite a bit to shift.”
First Choice managing director of UK distribution Peter Shanks confirmed trading was improving with Lunn Poly managing director Nigel David adding: “When you look at the weather we’ve had, it’s not surprising.”
Going up: current prices have increased by up to £50 more than last year
Current market figures
Overall market down 1.5% for week ending July 15 but up 10% on the same week in 1999.
Operators cumulative 2000performance:
Thomson down 7%
Airtours up 14%
First Choice down 1%
JMC down 9%
Cosmos up 24%
Panorama up 57%
Unijet up 3%
Operators performance July 8-15 compared with same week in 1999:
Thomson down 17%
Airtours up 9%
First Choice up 1%
JMC up 30%
Cosmos up 50%
Panorama up 84%
Unijet up 36%