ESTABLISHED package travel operators are scaling back capacity and
losing market share as the largest online specialists continue to demonstrate
astounding growth.
Although the size of the ATOL market is unchanged at 31 million
passengers, the Civil Aviation Authority’s July 2004 edition of ATOL Business
shows capacity of the major operators continues to fall.
And for the first time Lastminute.com has entered the top 10 of largest
ATOL holders, overtaking rival Expedia
which made the list in January.
The big four now hold a 48% share of total capacity, down on last year’s
52% and a big drop from January 2000’s peak of 57%.
CAA consumer protection director Helen Simpson put the trend down to
major players selling less flight-only in reaction to no-frills carriers,
rather than fewer packages. She also cited increased competition from online
specialists.
“A lot of the big players are not doing flight-only to Spain because
they cannot get decent prices now. It doesn’t necessarily mean there are less
packages on offer.”
The eight biggest traditional travel groups are licensed to carry 1.4
million fewer passengers this year while the two largest online specialists –
the Lastminute Group and InterActive Corporation Group, including Expedia –
have added 700,000 passengers.
TUI, MyTravel, Thomas Cook, First Choice, Cosmos, Gold Medal,
Trailfinders and Libra have reduced passengers they can carry by a total of 8%
for the year to September 2004 or March 2005, depending on ATOL renewal dates.
These figures relate to each company’s total group carryings.
The biggest capacity cut for this year is 17% by First Choice Holidays
Group, probably due to its decision to cut down flight-only sales.
The big four groups only are authorised to carry 14.7 million passengers
this year, 8% less than this time last year.
Meanwhile, the two online groups have trebled their combined licensed
capacity over the last year.
The Lastminute Group, which has added Travelbargains, Gemstone Travel
and Travelcoast to its ATOL since July 2003, is licensed to carry 546,902
passengers compared to 142,433 last year, up 284%.
The InterActive Corporation Group, which includes TV Travel Shop, is
licensed for 536,605 passengers on last year’s 217,440, a hike of 147%.