FIRST Choice has cut its winter ski capacity by more than 6% following poor sales.
After a strong early performance, the operator admitted bookings have slowed to a crawl since April.
It has axed 5,000 holidays, mainly to Italy and France, and warned further cuts will be made unless the market improves. The operator still has two-thirds of its programme left to sell.
Speaking at the launch of the operator’s third-edition ski brochure, First Choice marketing and planning director Adrian Harwood predicted the market will show a 7% downturn at the end of the season.
He blamed the millennium and less disposable income for the decline.
“Because Christmas and New Year fall on a Saturday we have altered our flights programme and created more nine and 10-night breaks,” he said. “That has reduced the number of holiday weeks available. I also believe people have invested in housing which has left them short of money.
“Where skiers were taking two holidays a year they are now taking just one.”
Harwood said Italy in particular was enduring a “torrid time” with its market share falling by 5% to 13.7%.
“They had poor snow last season and there has been no relative decreases in price,” said Harwood.
“Italy and France is where we have cut capacity and it will be trimmed further unless the market picks up.”
If sales remain poor, holidays in March are likely to be reduced.
“We will be able to shift the capacity to winter sun destinations,” said Harwood.
He added Andorra and Austria are bucking the trend, with both of them showing growth.