The disappointing post-Christmas booking period has thrown up some interesting sales patterns. Directional selling has been rampant.
No-one can match Lunn Poly’s deals on Thomson or Going Places’ deals on Airtours and consequently both retailers are selling an enormous amount of in-house product (see story, back page). No wonder the Association of Independent Operators is calling for the Government to act quickly to make retailers display their ownership links on the outside of shops. Having pledged to do so, the Government’s delay is inexcusable.
The Thomas Cook group has outsold everyone post-Christmas. Much of it has been for seat-only sales and its tour operation has been selling holidays much cheaper than rivals. When you’ve got to shift capacity, it’s a great benefit not having to answer to shareholders.
The major multiples have passed on the chance to squeeze First Choice before it builds up its retail chain.
But the most interesting point is that the multiples are down around 20%, while the independents have fallen around 7%. Perhaps that is because the big guys’ advertising campaigns have been so dull. With the exception of Thomson, every company is just pushing its name or claiming to be cheap and the public seems tired of it.
But it’s not all doom and gloom – cumulatively the market is still about level with last year. Send your views on booking figures to the address below.
JeremySkidmore – editor