TUI UK managing
director Chris Mottershead has admitted Thomson’s prices could rise depending
on the take-up of its new charging system for in-flight meals and airport
transfers.
But he defended
the move to price meals and transfers separately for Thomson’s summer 2003
programme as a cost taken out of the package rather than an additional charge.
The cost of these
packages would have been on average £17 more had the meals and transfers been
included in the overall price.
But critics argue
the cost of having to provide food and coaches, even if only a small number
choose it, could be expensive for the operator and eventually put up the
holiday price.
Mottershead said:
“It might push prices up, it depends on the take-up. We feel the majority will
still choose the coach because they want a cheaper option. But why not offer
taxis for those who want it?
“There is pent-up
demand for taxi transfers but before people didn’t want to book it because they
had already paid for the coach in the price. They felt ripped off.”
Mottershead said
if the pricing strategy backfired, Thomson would be forced to come up with
another approach.
“If it did push
prices up, we would have to find other ways to stay cost efficient. But we are
not saying this is something that will mean the cost of holidays going up,” he
said.
“Prices will not
move much over the next few years because we have to provide a competitive
product. We have to keep margins low and prices tight.”
The average package holiday price of £460 has only gone up by £10-£12 in
the past decade, he added. Thomson’s new pricing strategy charges £10 for
in-flight meals per person return and £5-£10 for coach transfers as extra to
the basic package price.