USspecialist operators are predicting a difficult year with discounting expected over the peak summer months.
Operators attending this year’s Pow Wow were cautious about prospects for the summer despite USgovernment figures showing that the UK is currently one of the strongest overseas markets.
UKarrivals to the US for 1998 were up by 7% to almost 4m and traveller spend increased 16%. However, this figure is expected to level out for 1999 before picking up again in 2000.
Operators attribute the slowdown to a combination of factors including competition from cut-price deals to the Mediterranean and Asia, increased air capacity from bigger aircraft coming on to US routes and the so-called millennium factor where clients are saving up for a major trip in 2000.
Getaway Vacations managing director Roy Myhill said:”We are battening down the hatches because the next few months are going to be tough. Some operators are going to be discounting in July and August, which is something we’ve not seen before.”
Funway managing director Stephen Hughes said the charter operators would be hard hit by the influx of extra seats on scheduled routes resulting in lower scheduled fares.
“The charter operators have lost their competitive advantage. A few years ago the difference in price between a charter and scheduled fare on a peak season flight to Florida was up to £150. Today it can be as little as £50.
“In addition, consumers are becoming a lot more streetwise and appreciate the flexibility that scheduled flights offer.”