SENIOR management from arch-rivals Thomson and Airtours got round the table for the first time ever to discuss the future of European tour operating at a forum in London hosted by investment bankers Dresdner Kleinwort Benson.
Thomson Travel Group chief operating officer Roger Burnell and Airtours chairman David Crossland were joined by Dr Ralf Corsten, executive board chairman of German giant TUI.
Journalists were banned from the meeting, which was staged for investors and analysts, but Travel Weekly can reveal that all three felt consolidation in the tour operating market was far from over and will continue throughout Europe.
The three companies said they were determined to remain as major players in Europe.
Airtours was the only company to embrace operating in the US – both Thomson and TUI were lukewarm on the idea.
Burnell said Thomson’s strategy was to differentiate its product from other products offered by othercompanies.
He said the battleground over the next few years would be on quality and service rather than price.
Thomson’s recent advertising campaign focused on encouraging people to pay more for the company’s holidays, claiming they are the best on the market.
Burnell, Crossland and Corsten stressed the need for companies to be sensible about the supply of holidays. They said the industry had now matured from the mid-90s, when capacity outstripped demand, and companies were now far more sensitive to their shareholders’ need for increased growth and profits.
Burnell and Crossland refused to comment on speculation that their companies could be preparing a hostile bid for First Choice, which is planning a merger with Kuoni.