‘Lack of flair’ blamed for Virgin Sun failure

‘Lack of flair’ blamed for Virgin Sun failure

Report by STEVE JONES

VIRGIN Sun flopped because it was unable to provide a different product from its more established rivals in the short-haul market, Virgin Holidays managing director Ron Simms has said.

Speaking after First Choice acquired Virgin Sun in a deal worth up to £5.9 million, Simms said Virgin Sun will concentrate on its long-haul operation where it established its reputation.

He said the opportunities to offer something different in the mass market were hard to find.

“Virgin operates in environments where the Virgin flair can make a difference,” he said. “While there is insufficient room to offer short-haul package holidays significantly different to our competitors, long-haul holidays is where we lead the way.”

Virgin launched its ill-fated short-haulprogramme in 1998 with Sir Richard Branson claiming it would become one of the leading mass-market operators within a decade. However, industry observers said it relied too heavily on the Virgin brand for credibility.

With most good-quality accommodation tied up in long-term contracts with the vertically integrated groups, questions were also raised about the quality of its properties. Distribution was also a problem, sources said.

Simms said Virgin Holidays was confident of breaking the 300,000-passenger barrier in its long-haul programme this year and aimed to become the UK’s leading operator in three years.

“We will introduce Canada through Virgin Atlantic’s route to Toronto and double our South African programme,” said Simms. “We will also expand in the Far East with countries available to us through Singapore Airlines’ routes.”