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Kosovo crisis squeezes prices, not demand


IT’S been a funny old year for Greece, according to Argo Holidays managing director Mathilde Robert.



At the start of 1999 there were predictions that the destination was beginning to shed its bucket-and-spade image, attracting a more upmarket client.



But then came the Kosovo crisis and few people wanted to go. August picked up, but Robert says she is dreading September.



She said:”Operators put more capacity into Greece after Kosovo, and as a result I can’t compete with the prices which are selling at the moment. It’s not that demand is not there, but there are too many seats in the market.



“We’re offering £264 self-catering for one week, while others are offering £199 or even cheaper. We will sell our holidays because a number of travel agents will recommend us because they know we offer value for money, but it will be really hard.”



Robert said Corfu was most affected by the Kosovo crisis because it is nearest to the area. In contrast, the Ionian islands, including Zante and Kefalonia, were hardly affected.



She said:”Kefalonia started out selling well, and before the war started there was very little left. Zante sold up to the last minute, but we did have to discount.”



Next year is looking much more hopeful. Argo has increased capacity from 35,000 to 40,000 in its 2000 brochure, out later this month.



The new brochure will have an expanded weddings programme, features the island of Alonissos, near Skathos for the first time and a newresort on the Greek mainland, Marathon, near Athens.



Against Robert’s better judgement, all-inclusives will be added for the first time. “I don’t want to do it, but we are losing out against competitors by not featuring all-inclusives,” she said.


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