The press has recently been filled with the doom and gloom of falling profits and the demise of carriers etc. The big companies are under the impression they can buy their way out of problems by acquiring competitors.
I have to wonder about the sense of this. Market share and dominance is easier to achieve as a manufacturer, as the possibility of me setting up acar-making business is very slim indeed.
However, new travel companies can be formed on a shoestring, trade for a period of time and take that elusive market share. So what if they go bust – somebody will take their place. I feel the industry is large enough for everybody and if we all charge a fair rate for a fair job, then the market will expand.
Consistency with realistic pricing is the key. Think of the benefits for us all – more staff on higher salaries, less stressed clients and generally a better business to be in. We’re not selling baked beans here, but a major part of an individual’s annual income.
We should all be dedicating more time ensuring we are matching the right party with the right product. Let’s face it, how many of our clients will pay an extra £10, £20, even £50 for a memorable break? More than you would think. Let’s get the capacity and pricing right, and forget the nonsense of market share and turnover. Concentrate on the bottom line.
Paul Evans, managing director, Paul Evans Travel, Southsea, Hampshire