AIRTOURS Holidays managing director Chris Mottershead has predicted a steep increase in holiday prices for 2001 to offset soaring costs in the industry.
He said a family of four could be spending an extra £80 in summer 2001 on top of the usual inflationary rise.
The price-hike warning came during an interview with Travel Weekly editor Jeremy Skidmore at the Midconsort conference in Palma.
Mottershead told delegates: “We have not seen cost increases in the market for several years but are now seeing a rise in fuel costs and the first signs the exchange rates could swing against us. I expect to see a price increase in summer 2001 of between £10-£20 per person because of these costs.”
Hotel rates are also on the increase as groups become larger. “Suppliers are rubbing their hands,” said Mottershead.
During the interview, he also confirmed Airtours will increasingly look to developing its existing product. The move follows the European Commission ruling blocking Airtours’ bid for First Choice which effectively ended further consolidation in the market.
“The German market owns hundreds of properties. We own a number and want to tie up more long-term agreements with hotels,” said Mottershead.
“Any tour operator that does not do so is seriously at risk, not only from the UKmarket but from Europe.”
Mottershead also pledged to drive up the quality of its product, claiming hundreds of substandard properties have been axed in recent years. “We have all been guilty of burning properties out and not refurbishing them. We realised this was crazy,” he said
“The industry has lived on the price message for years and it’s hard to move away from that. But I don’t think discounting undermines the quality.”
Earlier in the interview, Mottershead insisted there was an “opportunity” for Airtours to work with Midconsort but admitted they were “nowhere near a deal”.
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