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When it comes to maintaining our proud position as market leader in the UK’s package holiday market it is quality and value

which gives Spain its competitive advantage

MANUEL BUTLER

ACHIEVING a real competitive advantage in the travel industry is notoriously difficult. And maintaining it is thought to be near impossible, because of lightning-fast competitive response and leapfrogging.

What then is Spain’s competitive advantage?

What is it we believe will maintain our proud position as clear market leader in the UK’s package-holiday market? My answer will disappoint anyone hoping for an earth shattering new ‘big idea’. But it is still a radical answer. It is quality. And let me explain why it really is radical.

Words and good intentions are not enough. Serious money is needed to make things happen. And Spain committing such large amounts of public money is bold and challenging, given the wide range of demands on the public purse.

Over £22 billion has already been committed to 2006 for the Quality Standard for Spanish Tourism Plan with investments in infrastructure, airports, roads, rail links, training and promotion planned.

These funds are in addition to the budgets already committed to the hotel quality programme. And here in Britain I have just announced a major investment in agent training and familiarisation with our Spain Specialist Programme.

I also announced our Spanish Tourism Exchange for Professionals travel trade exhibition and trade show from June 6-7 at the Royal Horticultural Hall in London, with over 100 exhibitors from the Spanish regions and tourist boards, private companies and hoteliers all set to attend.

This event has attracted support from organisations such as ABTA, the Association of Independent Tour Operators, the Campaign for Real Travel Agents, Federation of Tour Operators, Advantage Travel Centres and Worldchoice and all travel trade professionals are warmly invited.

Another aspect to the quality issue is the new European currency. The adoption of the euro by most of Europe is also important in keeping Spain at the forefront of quality holidays. The euro will balance out different economic factors of the member countries and will demonstrate that Spain’s economic conditions are far more favourable for tourists than Eastern and Southern European countries.

But the most radical dimension in Spain committing to quality relates to customer expectations.

British consumers are becoming more affluent and are predicted – given demographic changes – to be enjoying more leisure time. More ‘time rich and cash rich’. They are also among the best informed and most sophisticated shoppers in Europe.

They know their rights and how to use them. The higher income earners are renowned for shopping around for good deals. But what they will never accept is discounted quality.

They expect quality hotels. Quality airports, quality roads, quality restaurants, quality attractions and sports facilities. And Spain will remain first and foremost a quality destination.

I know the UK tourist is price sensitive, but Spain – by irrevocably marrying quality to value – is not a price-led market. And I see that as our real competitive advantage.