Abta17: Aviation seeing ‘shake out’ of weak players as low prices become unsustainable

The aviation industry is seeing a “shake out” of the weaker players as low ticket prices become unsustainable.

Director of Travel Trade Consultancy Martin Alcock said record low oil prices had allowed airlines to offer pricing not imaginable previously.

Ryanair, easyJet, IAG and Wizz Air are all lowering their prices in 2018.

Monarch Airlines’ collapse follows insolvency filings at both Alitalia and Air Berlin as growth in capacity forces carriers to cut fares in a battle for market share.

Alcock said capacity would not decrease as other airlines snapped up routes from failing carriers.

Addressing delegates at Abta’s Travel Convention, he predicted airline ticket prices to remain low, more “coupling up” between airlines and more mergers and acquisitions.

Alcock also said the industry is starting to see tour operators behaving more like OTAs and OTAs behaving more like tour operators.

Thomas Cook has recently announced a partnership with Expedia, which will see the online travel giant become the preferred provider of hotels for Thomas Cook’s city and domestic holiday business.

Meanwhile On the Beach has grown its directly contracted hotels to 66%.

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