In the advent of war, tour operators – and in particular the specialists – are left in an unenviable position.
As a specialist independent tour operator to Israel, we can sympathise with those feeling the effects of the conflict in the Balkans.
Our market is familiar with conflict in the Balkans and uniformed Foreign Office advice.
Currently, operators are facing the problem not of advance bookings for May and June to countries such as Greece, but for those who are currently deciding not to book because of the perceived proximity to the conflict of Ionian islands such as Zante and Corfu. Late bookings for May are virtually non-existent, so what does a specialist operator do about committed flying?
It is proven, in times of trouble that it is the specialist operator and those in resort left supporting the market.
Unlike the large operators, specialists won’t pull out and the more sensible ones will (if possible) consolidate their positions.
Flight seats are after all a perishable commodity and something that all operators are tied to.
Large multiple operators, however, have the opportunity to switch sell to other destinations. In addition to this the fact that some use their own in-house airlines, makes it far more financially viable for them to discount package prices. And when the going gets tough scheduled airlines have also been known to assist tour operators in times of trouble, however contracts with charter airlines do not always allow operators to cancel flights. They are therefore forced to sell packages at ridiculously low prices.
The burden of any loss of revenue is not shared equally between tour operator, airline and accommodation provider. It is the specialist who bears the greatest loss.
The customer expects holidays to get cheaper. Prices of all other consumer goods rise on an annual basis and this seems to be an acceptable fact of life. The cost of a pint of milk, a first-class postage stamp, a new car. Yet the cost of a holiday seems to have stayed the same or actually been reduced for longer than I care to remember.
As independent tour operators struggle to stay independent and travel agents struggle to survive, the advent of the Internet and direct selling, will holidays increase in value and reflect the true cost of what is deemed a luxury purchase item? I fear not.
The task both travel agents and tour operators face is one of convincing the client that they need to pay more realistic prices for their holidays and it is a task that currently remains unchallenged. Making survival for many an impossible feat.
Stuart Lewis is managing director of Peltours