Cosmos is to scrap all hotel guarantees in Spain for summer
2006 in a move that could ultimately lead to brochures being
replaced by catalogues.
The move is the latest stage in Cosmos’ development of a more
flexible business incorporating dynamic packaging.
Cosmos overseas purchasing and operations director Hugh Morgan told
the Spanish Tourism Exchange for Professionals guarantees had made
up 85% of business to Spain six years ago, but now the model had
changed. “From next summer, there will be no more
guarantees,” he said.
Spain represents around 30% of Cosmos’ business – half
the amount it represented two years ago. The operator still has
some guarantees in destinations such as Greece where it remains
cost-effective.
Morgan revealed he would like to ditch brochures completely to
improve cost-effectiveness. “Brochures are a huge expense
running into millions, with each costing around 50p. I’d love
to have no brochures as we can put it all on the web.”
Cosmos is removing prices from its villa programme this summer,
instead including price inserts in brochure
‘catalogues’. Morgan said it was “not beyond the
realms of possibility” the practice could be extended across
all its brochures.