OPERATORS have vowed not to pile on
capacity this summer in a bid to protect margins and prepare themselves for a
tough few months ahead.
With the Queen’s Jubilee celebrations and the World
Cup in June conspiring to keep people at home, operators are determined to
concentrate on profit rather than high volumes this summer.
In addition, the gap between Easter and the half-term
holiday at the end of May is longer than normal this year – eight weeks rather
than the usual six – which will result in less demand for holidays.
One operator said: “I think you’d be brave to put
capacity back on.”
Multiples do not need to decide until March whether to
put capacity back into the market – having cut it following September 11 – but
admit they have no intention of doing so.
Airtours Holidays managing director Seamus Conlon
said: “We have taken capacity out of the market. I cannot see us putting it
back in.”
Cosmos commercial director Stuart Jackson was
confident the Big Four would not mis-read the market and add holidays
needlessly. “The message people want to portray is that there are less
holidays, so they can try to make the margins.”
Despite the hurdles ahead, operators were bullish
about trading post-Christmas even though sales were down around 20%. Cosmos
bookings were in line with expectations, while Airtours said customers were
picking up brochures. “It’s looking like a normal January, it’s not good and
it’s not bad,” Conlon said.