THE end of duty-free sales this summer means fare increases on the tunnel and ferry routes to France next year could be as much as 40%, according to some tour operators.
But companies say this will have a less dramatic impact on overall package rates in a French market that is enjoying big gains, particularly in the self-drive, city breaks and self-catering sectors.
Cresta head of marketing Jane Williams said: “The average low-season cross-channel fare is increasing by 20% and the average peak rate by up to 40%.
“Although we have not yet finished pricing for 2000, the average package price increase will be about 5% on a week-long holiday and more than 12% on a one or two-night break.
“This is a direct result of channel operators clawing back lost revenue from duty-free and it is a good move for the trade. We will now have realistic fare levels and hopefully see the end of the £1 promotional rate simply to attract the day shoppers,” she added.
Travelscene said it does not expect strong gains on its French drive programme to be unduly affected by the end of duty-free.
Sales director John Harding said: “We are less vulnerable to the loss than ferry operators. Rates had got to an unnaturally low level and sensible increases are unlikely to harm the buoyant short-breaks market to France.”
Bridge Travel Service SelfDrive general manager Jackie Willcocks said: “I expect brochure prices to rise by 8%-12% following more realistic fare levels next year.
“This still represents very good value to the consumer. The market will remain very competitive, especially with the growth of the low-cost air routes into France.”
As an example, Cresta’s Williams said air-inclusive packages to France are unlikely to increase by more than 2%-3% because of the cheap fare competition, especially to Nice.
“Our package prices to the Riviera and Monte Carlo will remain stable. Fares to Nice have not risen due to EasyJet coming on to the route and despite the fact that in the peak we could sell our seats twice over,” she added.
The French Government Tourist Office believes part of the increased interest in France is due to the wide exposure it received from hosting the 1998 World Cup.
Managing director of the FTGO’s London office, Pascal St Pere, said: “We expect to have an even better season this year because of the strong impact of media coverage in the French cities involved in the tournament. Our aim is to attract 72m visitors for 1999 – up 2m on ’98 – including a 3%-5% rise on the 11m British travellers in the same corresponding period.”
St Pere added that a number of events for both the trade and consumer are being planned throughout the new millennium year, starting at World Travel Market next month.
These include a Festival of Wine 2000 event and a Discovery Programme treasure hunt for travel agents.
On January 14-16, a new trade and consumer exhibition called Vive La France will be held at London’s Olympia, showcasing all aspects of the country with representatives from tourism to perfume houses. A trade preview is set for the evening of January 13.
In addition, a France 2000 Workshop is being planned for March 2-3 at Celtic Manor in Newport, Gwent, South Wales, which is expected to draw 150 French exhibitors and 250 UK tour operators and coach companies. The event includes the second France Travel Awards and Gala Dinner.