Increased tactical promotions by the no-frills airlines are helping to boost late dynamic package sales in the travel sector.
Bed bank youtravel.com sales and marketing director Paul Riches claimed airlines were being forced to lower prices in the crucial late sales period, in contrast to their traditional pricing model of hiking up prices nearer departure.
This has allowed cheaper air fares to be sold in conjunction with available bedstock to provide better-priced deals, he said.
The bed bank has reported a surge in late sales, with June bookings and revenues up 18% year on year for the same month. This compares to 4% year-on-year growth in May, while the previous few months were all slightly down on last year.
Cumulatively, the bed bank is about 8% down, although Riches said this could change over the next few weeks if sales continue to improve. Growth is strong in Turkey, Portugal, Greece and Tunisia, with Greece the fastest growing destination this year.
He added: “Gone are the days of the no-frills airlines’ prices increasing on the majority of their routes [nearer to departure].
“The sector we are in has proved particularly resilient in the last couple of months. I am not sure some of the tour operators have seen this, and customers are not willing to pay the prices of the high-season holidays.”
He said there was a “cat and mouse game” being played out on prices, as fears rise of a price war if operators are forced to flood the market with heavily discounted deals to sell remaining holiday stock.