FIRST Choice is to cut back summer ’99 capacity by 4% following predictions of a tough lates market.
Chairman Ian Clubb reported summer bookings up 14% but said, like other tour operators, it was expecting a slowdown in the economy this year.
“It is going to be difficult in the lates market,” he said.
In preparation, the group is planning to sell a greater proportion of its 1999 programme before the end of March to mitigate the effects of late sales discounts.
While First Choice is cutting back capacity overall this year, it is still planning to expand its direct-sell brand , Eclipse, by doubling capacity to 400,000 within the next 16 months.
“There seems to be a general trend to book more holidays direct but the majority of all holidays are still sold through travel agents,” added Clubb.
The news came as the group announced record pre-tax profits of ú50m for the year ending October 31 1998.
The results included the ú15m summer profits for Unijet and Hayes and Jarvis.