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Trade warned: no need to cut prices too low


TOUR operators have urged the industry not to ruin margins by embarking on over-aggressive post- Christmas campaigns.



Operators and agents are gearing up for the traditional peak booking period with the summer 2000 market showing a 5% increase on last year.



JMC managing director Simon Vincent and Airtours sales, marketing and development director Ed Sims have both called for sensible discounting levels.



Vincent said: “There’s no need to go over the top. The summer season is in a healthy position. Capacity has been kept roughly level with last year and there is consumer confidence at the moment. We do not need to heavily discount.”



Sims added: “The level of discount offered is not necessarily what the consumer expects. As an industry we create that expectation.”



Thomson sales director Manuel Mascarenhas said: “Some people have spoken of a bloodbath but I don’t believe that will happen. We are certainly not interested in a discount battle.”



But industry observers are sceptical. One said:”Summer 2000 is looking good and there is no need for an over aggressive campaign. But since when has the travel industry shown any logic or common sense?”



None of the major companies have revealed their campaigns although sources expect discounting levels to be in line with last year, with savings of between 10% and 20% and free insurance.



A slow start to the booking season was also being anticipated as customers suffer a millennium hangover.



Thomas Cook and Thomson both said they are looking to move away from a purely price message in their campaigns.



Thomas Cook retail marketing manager Chris Harris admitted customer service will play a key role.



“We take £2000 from people and make them queue an hour before doing it,” said Harris.”



He declined to reveal details although a queue-busting initiative is expected.



All Thomas Cook shops will be open until 8pm today with customers encouraged to join staff for a drink. Harris said customers who register for a holiday will be contacted by staff when the discount campaign is launched.



Thomson is donating up to 2000 free holidays in a special promotion. Customers making a booking between January 4 and February 15 can nominate an individual who they feel deserves a holiday.


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