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consumers self-packaging holidays is not a threat to major operators because
the total market is growing, according to First Choice UK and Ireland managing
director Dermot Blastland.
At
a debate on the impact of the DIY holidays trend, hosted by the Chartered
Institute of Marketing Travel Industry Group, Blastland said: “I don’t think
there are winners or losers – it’s such a big market and good companies will
survive whatever they do.”
Blastland
said the total number of holidays sold is increasing annually, from 32.3
million in 1998 to 39.9 million in 2002 – a rise of 24%. Figures showed both
inclusive tours and independent holidays are growing – the latter at a faster
rate – and the same number of people are going away but more frequently.
Inclusive
tours grew by 18% from 17.4 million in 1998 to 20.6 million in 2002, while
non-inclusive tour holidays grew by 30% from 14.9 million to 19.3 million.
Figures
from Travel Trends 2002 research show the number of people going away once a
year has decreased, and those going two or three times a year has increased.
Blastland
said the low-cost phenomenon, fuelling growth in self-packaging, still failed
to cover large sections of the mass market.
“How
do you get to Cuba with Ryanair? What about Cancun or Rhodes? The list goes on.
There is less overlap than people think.”
Goldman Sachs International executive director equity
research leisure and hotels Richard Chamberlain argued there was a “structural
shift” towards self-packaging.
He predicted low-cost carriers would increase from 10%
to 30% of the airline market in the next decade.
His research, from September 2003, also found consumer
protection was “way down the list” for holidaymakers – an issue disputed by
operators.