TUI UK is considering halving the number of ATOL-protected packages it offers and is seeking an exemption on bonding seat-only sales from the Civil Aviation Authority.
The group offers more than four million bonded package holidays a year and four million seat-only, one-way flights.
Managing director Peter Rothwell said: “We expect to be in a position to compete on selling seats with EasyJet and Ryanair. After that we need to look at the way we present holidays. We must go with the market.”
Sources suggest TUI plans to cut its bonded programme by 50% for 2008. Rothwell would not confirm the figure, but said: “We could go further than 50%. I can’t discuss the options. The decision will be made in the first quarter of next year.”
The extent of de-packaging will depend on “how we think we should best present our programme,” he said.
Bonded holidays will be marketed as financially protected. “We anticipate a greater emphasis on protection oninclusive holidays,” Rothwell explained.
He described the term package as unhelpful and said: “A shopping-basket approach may be the way we go. I could imagine brochures featuring accommodation and separate flight lists or customers going on the web to book a flight.”
Rothwell predicted the rise of de-packaging across the industry would be “rapid”.
He added that the company was studying the implications of the Court of Appeal ruling and CAA statement for itsretail operations. “We will have to look at it. We already sell a large number of components in retail shops and online.”
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