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Carriers slash air fares in drive to lift market

AIRLINES and seat consolidators are trying to tempt holidaymakers into taking a break before the millennium by slashing air fares to most parts of the world.


Although both charter and scheduled carriers claim they have almost sold out of capacity for departures over the New Year, there are bargains for people who want to get away now.


Travel 2 air product director David Gibbs said:”There are some good deals in every market for departures over the next few months because demand for travel outside the traditional peak periods is not meeting capacity.


“The millennium has taken the focus off booking a holiday this year, which means airlines have got a lot of empty seats to fill.


“People are probably hanging on for some really good deals – and if they hold on, they may get some good prices. But they should be encouraged to book now because prices are already low and by booking early they will get a better choice of flights.”


Gibbs said some of the best bargains are to the Far East – particularly Thailand, Malaysia and Korea – and to Australia.


Unijet general manager of aviation Claire Trevis said flights to the US East Coast are also very competitive as there has been a significant increase in capacity.


From London Virgin Atlantic has added an extra flight to New York, and United Airlines has launched a new service to Boston. “The airlines are putting on more flights because business-class traffic to the US is quite strong at the moment, and consequently they are discounting fares to fill up their economy cabins,” said Trevis.


Unijet’s cheapest fare to the East Coast this summer is £239 plus £45 tax with Continental Airlines. Usually the fare is over £300. “Most other carriers to the US have similar fares at the moment, and we have noticed that the airlines are becoming much more aggressive in their pricing. “This is also the case on the Caribbean routes where fares are very competitive.”


Unijet has a £380 return to Montego Bay in Jamaica with British Airways. Last year, the same flight would have cost £400, according to Trevis.


Consolidators expect fares to most destinations to remain very competitive up to the end of November or mid-December, after which the price increases significantly.


“There is a cut-off at the end of November and from December 1 everything goes through the roof,” added Travel 2’s Gibbs.


He said fares for the first half of December are higher than usual, although these may come down as few people who want to go away for the New Year will want to leave before the middle of the month.


“Most people will only go away for two or three weeks at the most, so it is the second two weeks of December that will carry the real mega premiums,” he added.


In the charter market, there are fewer bargains to be had throughout the year as fares remain stable. Cosmos Flights said its average sale price for the summer is on a par with last year.


Cosmos Flights product manager Stuart Jackson said:”We have seen a 30% rise in business this year compared with 1998, and our average selling prices are the same as last year, which were £219-£220.”


However, he added that fares over the New Year period are twice as high as last year. The seat-only operator’s average selling price for December is £400 compared with an average fare of £200 last year.


“This figure has been distorted by the fact that we have sold more flights for the more expensive period at the end of the month that we did last year because of the millennium,” explained Jackson.


He said demand for December was up 40% on last year, with flights to the Canaries selling particularly well.


“People have booked early for the millennium because they realise there may be a shortage of flights,” said Jackson.


Pre-millennium travel fares


New York/Chicago: £210 September 1-December 15.


Boston: £213 November 1-December 14.


Orlando: £244 November 1-December 14.


San Francisco: £267 January 1-March 31 2000.


Vancouver: £350 November 1-December 14.


Cape Town: £311 up to June 24.


Honolulu: £322 up to May 30.


Seoul: £367 up to May 31.


Rio de Janeiro: £394 up to June 30.


Sydney: £502 up to June 29.


n Bookable through Unijet. All return fares are from either Heathrow or Gatwick and exclude tax.


Operator views


“While availability to many top-selling destinations over the millennium period is now very low, you can pick up deals to the East Coast of the US, to the West Coast, to the Caribbean and the Far East and just about everywhere else at the moment.”


Claire Trevis, general manageraviation, Unijet


“People who hang on for a better deal later in the year may well get a cheaper air fare but they might not get the flight they want.”


David Gibbs, air product director , Travel 2


“The flight-only market is one that would need to book early for travel over the millennium period as there is likely to be a shortage of capacity.”


Stuart Jackson, product manager, Cosmos Flights

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