Long highlights niche strategy for First Choice

Long highlights niche strategy for First Choice

Agents and operators discussed a vast range of topical subjects at the ABTAConvention in Kos. Travel Weekly’s Steve Jones, Lisa James, Jeremy Skidmore and Isabel Choat report

FIRST Choice will continue buying niche operators rather than become embroiled in a scrap with competitors in the traditional mass markets, chief executive Peter Long said.

Speaking during an interview with Travel Weekly editor Jeremy Skidmore, Long said he wants to build a different business model to other pan-European players.

“The mass market in the UK with First Choice and Unijet is our core business but we have built a series of niche operators around that,” he said. “We don’t want to be a generalist and have a punch-up with Preussag or Airtours in every market.”

He said there are a number of opportunities in Europe for further expansion.

Long said it was unlikely that First Choice would collaborate with other UK operators over the joint buying of beds in a bid to compete with Preussag but revealed talks were taking place over the joint purchasing of fuel.

On discounts – which Long criticised back in the summer – he said the trade needs to develop sophisticated yield management systems. “Discounts were going up almost on a daily basis. We sometimes lose our nerve – which may be understandable as operators have a lot of risk – but I want to see focused discounts, not across the board.”

He added that its retail network was almost at its optimum, although it would look at opening more stores in ASDA supermarkets.

Earlier, Long said directional selling had hit a peak, while he admitted the industry has much work to do in dealing with complaints.

Talking point: conference delegates were involved in discussions that included the future of discounting in the trade and the Internet