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Opinion: Push value holidays, not cheap holidays

Dermot Blastland, managing director, TUI Travel UK and IrelandSince the start of the recession, operators have insisted that holidaymakers will still travel this summer, they just might book later. This trend was confirmed in our May trading update and I’m delighted the bookings are still coming in.

We can’t just rely on the weather being good at home. As I write this, the weather is lovely, but who is to say that by the time you read it, it won’t be dreadful? It is inevitable that Brits want to get away to the sun.

Don’t assume that everyone who walks into your agency is after a rock-bottom price. Our research shows that, more than anything, customers want value for money.

Some holidaymakers always book late to try and get a cheap deal. This year, there is a second group that didn’t feel they could commit too far in advance – not knowing whether they would have a job to pay for it. It seems most are still working and many have more disposable income than this time last year.

A good agent will find out what they are after and find a holiday that matches their needs – value for money doesn’t mean the cheapest on the system.

Tour operators base their prices on currency rates, fixed two years in advance, and this has given package holidays a price advantage. Book direct at today’s rates and your money won’t go as far.

Yes, we have reduced capacity, but we have anticipated the late market. We have worked closely with hotelier partners to ensure we have some excellent rates, to entice those who haven’t booked yet.

Combine that with sophisticated yield management systems that ensure our remaining capacity is split across a range of destinations, and the result is we still have holidays that offer excellent value, whatever the star rating consumers are looking for.

Is the worst over? Will customers return to booking their holiday early?

All I can say is that summer 2010 programmes are on sale and off to a good start already – so here is hoping.

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