| Journal: TWUK | Section: |
| Title: | Issue Date: 04/09/00 |
| Author: | Page Number: 8 |
| Copyright: Other |
Comment
Will Preussag pile the pressure on UK rivals?
As Thomson Travel Group prepares to become part of Preussag, its rivals are watching nervously to see what the German giant will do with the company.After a nervous summer when bookings have come in late and tour operators are grateful that they can rely on the UK market to make some money, the last thing they need is for the market leader to become a loose cannon.
Thomson will no longer be answerable to UKshareholders and could put on capacity without having to face the wrath of the City.
Preussag is very ambitious and is currentlyattempting to plug gaps in Italy, France and Spain.
In addition, Airtours has piled on capacity inGermany and the UK, with very different results. Its actions have helped to destabilise the market in Germany but Airtours seems to have got away with adding holidays in the UK and is inching ever closer to Thomson’s position as the market leader. Preussag may want to teach Airtours a lesson and at the same time ensure Thomson remains the number one in the UK.
On the other hand, Preussag is under pressure to make Thomson more profitable after paying £1.8 billion for the firm and generally prefers profits over price wars.
For the sake of stability in the UK, it is hoped Preussag will not fall into the trap of showing everyone who is the biggest and strongest company around.
Jeremy Skidmore – editor