AIRTOURS chairman David Crossland is close to achieving a long-term ambition to overtake arch-rival Thomson as the UK’s biggest tour operator.
Market-share figures show Airtours, which is expanding rapidly this year, will draw level in size with Thomson in the summer and industry observers expect the Helmshore-based operator to become outright number one by 2001.
Airtours has expanded globally far quicker than its rival but the group would love to become the biggest player in the UK.
After competition authorities blocked its takeover of First Choice, Airtours decided to add around 5% of capacity to its summer sun programme. But when the expansion of Direct Holidays and Panorama is included in the figures, the group’s total capacity increase is over 10%. Airtours is predicted to end the season with 24% of the estimated 10m summer package holidays, up from 21% last year.
Thomson has already stated that it will cut capacity by 6% this summer after a disastrous 1999 which saw profits slump from £124.4m to £77m in the year to December 31 1999. Its overall share of summer 2000 is expected to fall to 24% from 27%.
“Psychologically, it is a great move for Airtours to get ahead of Thomson,” said one source. “This is the year to take Thomson because it is going through a period of stability after a disastrous year.
“Airtours is better than anyone else at adding capacity and there are certain areas like Turkey, which is having a poor season, where you can get more beds.”
Crossland was unavailable for comment and Airtours managing director Tim Byrne refused to discuss the size of capacity increases, although he confirmed Airtours had expanded.
“Our view on market share is that we really don’t care,” he said. “If we can put on capacity and make money, then we will. But Airtours only has one emotion and that is to deliver profit.”
Thomson declined to comment.
Meanwhile, industry observers have warned the trade faces a tough summer.
Around 50% of holidays are still to be sold – a similar figure to this time last year – but bookings in May and June are poor. In addition, the industry has been hit by 50,000 cancellations (Travel Weekly March 20) and many people will not travel during Euro 2000 in June.
“The key is July and August and that is currently in the balance,” said one source. “If the poor bookings in May and June spill into July, then prices will be cut and profits will be hit.”
Operators are expected to launch next summer’s brochures in the week after Easter.
TABLE: 27%
21%
21%
20%
TABLE: 24%
24%
22%
19%
TABLE: Thomson
Airtours
JMC
First Choice
TABLE: Estimated market share figures
TABLE: Summer 1999 Summer 2000