News

Capacity glut ‘is an opportunity not a threat’

A predicted glut of capacity in aviation, hotels and cruising is an opportunity, not a threat, agents heard at The Travel Network Group conference in Split.

Steve Barrass, managing director of Gold Medal Travel Group, said: “Middle Eastern airlines are putting big orders in, but those planes need to be filled. There is an opportunity for us to fill them.

“Top hotels are opening around the world every day. They all need filling. It is a huge opportunity for us to fill them.”

Simon Ferguson, managing director, Travelport UK & Ireland, said the expansion by Gulf carriers was largely in response to growth in the APAC (Asia Pacific) region.

Other developments in aviation also mean airlines need agents to fill seats, he said, such as new plane orders by Ryanair, changes in easyJet’s business model to woo corporates, and Norwegian’s discount transatlantic services.

Commenting on Ryanair’s return to global distribution systems, Ferguson commented: “They are realists. If they’re going to fill planes, they need to work with agents and attract new business.”

He also highlighted aviation forecasts that airlines will make $45 billion next year selling extras such as seats and bags, offering yet more opportunities for agency sales.

Jo Rzymowska, managing director of Celebrity Cruises, UK & Ireland, added: “Our research among our affluent target audience shows they are happy to get on a plane to their cruise [instead of taking ex-UK cruises].”

She pointed out that cruise ships are built for a 30-year lifespan, offering agents more opportunities in the long-term.

And holidaymakers are living longer, fitter, healthier and wealthier lives, which is more good news for the travel industry, she added.

Share article

View Comments

Jacobs Media is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.