Package holiday company executives remain divided on whether mass-market, bucket-and-spade holidays have a future, or whether the industry must move to a more ‘niche’ business model.
First Choice managing director of mainstream business Dermot Blastland said the company wants to get out of the “generic” holiday business, and focus on offering specialist products.
“We want to move away from the business where people are just basing their purchases on price,” says Blastland.
On Holiday Group chief executive Steve Endacott said he couldn’t be happier that First Choice was planning to migrate from commodity holidays. “A major part of our business is pure commodity. As soon as First Choice moves out, I’ll move in,” he said.
He added that, of the 20 million packaged holiday customers, most are commodity buyers of cheap beach holidays.
Endacott believes that the new differentiator between package holiday companies will be about marketing. “Anyone can operate an asset-based business. The new skill set is successful marketing,” he said.
Blastland did not say what effect the move from selling package to niche holidays would have following the merger of First Choice and TUI.