This summer’s critical lates market is picking up, but heavy discounting is cutting margins for all but the biggest companies.
Travel Counsellors managing director Steve Byrne told the Barclays Commercial Travel Forum in London on June 17: “Late sales are up 20%-25% [on 2008], but there is pressure on margins. The larger view is of a 6% fall in UK revenue this year.”
He warned: “If you are in the service game, discounting can kill your business.”
Monarch Flights and Holidays managing director Liz Savage agreed, saying: “We see a lot of strength in the lates market in seat and package sales. But there is deep discounting.”
Flight Centre UK managing director Chris Galanty added: “You know something has changed when you see Thailand, Australia and the Pacific become late markets.”
TUI Travel UK managing director Dermot Blastland described late sales as “very strong” and said: “June and early July are off the scale, and we expect demand to keep rolling in.”
Blastland told Travel Weekly: “We expected people to book later and we are getting a higher average selling price [year on year].”
- How are your late sales? Discuss it on the travelhub forums