FERRY operators have expanded their holiday programmes for 2000 despite seeing a dip in carryings on some routes since the abolition of duty free last July.
France is the biggest growth area, with more gites, cottages and apartments on offer from Brittany Ferries this year (see story p56), and a number of new hotels featured in the SeaFrance brochure. However, more product is being added to other countries, with more operators expanding their programmes.
DFDS Seaways is putting two ships on the Amsterdam route from April 19 to offer a daily service and has increased capacity to Hamburg and Esbjerg, which are now served on alternate days from Harwich.
Brittany Ferries marketing and operations director David Longden said: “Last year was a good one and we have no reason to think it will change for this year.
“But the abolition of duty free has caused us considerable problems. The level of on-board spend has gone down by more than 50% and I’m not sure it will improve,” he added.
SeaFrance managing director Robin Wilkins said vehicle numbers in October and November fell about 25% and passengers numbers were down by a higher percentage because people were no longer taking day trips to buy duty free.
“It will take time for the market to recover and there will have to be more fare increases as I don’t believe anyone is making any money,” he said.
Irish Ferries and DFDS Seaways admit they also have been hit financially by the abolition of duty free.
DFDS Seaways UK sales marketing manager Matthew Eastlake said:”We knew duty free was going so we went into 1999 with higher fares, avoiding early-booking discounts.
“We have also worked to build alternative revenue streams, such as increasing cruise-break business.”
Eastlake pointed out that DFDS Seaways can still sell duty free on the Newcastle-Kristiansand route and its flagship Oslo-Copenhagen service because Norway is not in the European Union, so group revenues are buoyed by duty free.
Wilkins said SeaFrance had increased ticket prices by 50%-60%. “A day trip that cost £10 last year is now £25-£30,” he added.
A Hoverspeed spokesman said its fares had risen 20%-30% since the abolition of duty free because although passenger numbers had recovered, the fast-ferry operator’s margins had decreased.
As an alternative to increases across the board, some operators have switched to fluid pricing. Stena Line, for instance, is showing a lead-in price only on its Irish routes. This cost increases the nearer the booking is to departure date.
“The abolition of duty free has caused us considerable problems. The level of on-board spend has gone down by more than 50% and I’m not sure it will improve.”
David Longden, marketing and operations director, Brittany Ferries
“It will take time for the market to recover and there will have to be more fare increases as Idon’t believe anyone is making any money.”
Robin Wilkins, managing director, SeaFrance
MAJOR TRENDS
n Ferry operators, including Stena Line on routes to Ireland and Brittany Ferries, are replacing fixed fares with a new policy of fluid pricing.
n Double-digit increases in fares as ferry companies try to offset the loss of revenue caused by the abolition of duty free last year.
n Major expansion in the holiday product, especially in France, as ferry operators build their programmes to meet continuing demand on specific routes.
n Eurotunnel makes a move into the holiday village market to meet strong demand for self-catering family holidays.
n There are more packages to smaller European theme parks. Parc Asterix in France is new for Eurotunnel and Brittany Ferries, while DFDS Seaways has added a package to Phantasialand in Germany.