THE
Big Four tour operators have been branded lumbering dinosaurs who face
extinction if they do not adjust to changing consumer demands.
Delegates
at last week’s Advantage Conference in Valencia heard how demographic changes
and the trend towards independent travel are making industry staples such as
fixed departures and single supplements unsustainable. Much of the problem
hinges on the fact the industry has failed to find a viable alternative to
inflexible viewdata.
Thomson
national sales manager retail Jeanne Lally said: “I would love to wave a wand
over the technology, to develop a tool that allows us to manipulate the
duration of a holiday, but we are constrained by systems.”
Genesys
travel technology consultancy senior partner Paul Richer said the Big Four had
to develop the technology to respond to changing demands – something they
promised to do at last year’s ABTA Convention.
“If
Thomson wanted to sell flexible packages, it would have developed its systems
to do so. I do not think technology has any limitations – the will is lacking
to make the investment,” he said.
Another
technology consultant agreed. “The technology of vertically integrated
operators renders them unable to deliver real choice and makes them look like
dinosaurs.”
But
JMC sales director Ian Derbyshire disagreed. “As demand grows, operators are
becoming more flexible. Viewdata is limiting but it depends on what your
reservation system can offer,” he said.
Despite
research indicating 41% of consumers prefer self-packaged holidays (Travel
Weekly April 8), Lally pointed to the rise in package-holiday sales as evidence
of continuing demand.
First
Choice independent travel division managing director Nigel Jenkins said while
there was a move away from the traditional package towards greater flexibility,
people were still buying leisure products.
He
said: “We are looking at how we offer flexibility. This means reviewing our
systems, distribution channels and the way products are contracted.”
But
Bales Worldwide managing director Mandy Nickerson said consumers are demanding
tailor-made holidays. She said: “When we started, people thought they were
brave to go abroad. We need to cater for the backpackers of 30 years ago who
said ‘the next time we come here, we’re going to stay in that fancy hotel’.”
Airtours
Holidays managing director Seamus Conlon denied the package holiday was facing
extinction. “It isn’t just about putting the flight and hotel together, it’s
the kids’ clubs and everything else,” he said.
Meanwhile,
Richard Scase, professor of organisational behaviour at the University of Kent,
revealed there will be 3.4 million single-person households by 2016, prompting
marketing guru Ross Smith to warn single-person supplements would become
untenable.
But
Lally said the fact hotel beds are contracted on a per room basis meant
operators would continue to pass that cost on to lone customers.
Ironically, Airtours has flagged up
‘single family’ offers as part of its 2003 summer brochure launch. The move
coincides with the unveiling of MyTravel’s new pay and rewards package for
staff, aimed at dragging retailing ‘out of the dark ages’.