| Journal: TWUK | Section: |
| Title: | Issue Date: 08/05/00 |
| Author: | Page Number: 64 |
| Copyright: Other |
Ferry fares: by David Mott
Cross-channel ferry operators see renewal in travel agent interest
LAST year’s abolition of duty-free sales was a serious blow for the cross-Channel ferry trade, but it also had the beneficial effect of moving the business away from its traditional cut-price image.According to P&O Stena Line communications director Chris Laming, prices had been driven so low that travel agents did not consider it worth their while to make a booking.
But ferry operators like P&O Stena and Hoverspeed say that over the last two years, their fares have risen up to 40% as they first anticipated the loss of duty free and then applied a second increase of 20% to consolidate their position. Both Laming and Hoverspeed communications manager Kevin Charles claim to have seen a renewal of travel agent interest as the fares have risen.
“Our job now is to refocus agents’ minds that this is no longer a cut-price business,” said Charles.
He pointed out that Hoverspeed’s standard return price this year between Dover and Calais is £278 compared with £238 a year ago, a rise of 17%. There was a similar rise the year before. Hand in hand with this increase in fares has been a reduction in special day-trip offers. While they still exist, they are likely to cost at least £30.
The impact of the loss of duty-free has been substantial. At the port of Dover, for example, passenger numbers were down 6% and cars 9% last year. And that was despite the fact that duty-free was still being sold for the first six months of the year.
Post-abolition, comparisons with 1998 show falls of about 17% in passenger numbers, according to monthly figures produced by the Dover Harbour Board and the Port of Calais. The ferry companies have been forced to sell tobacco and alcohol at low French rates of duty. This is good for the passenger as, unlike duty-free, there are effectively no limits.
Ferry companies are reluctant to talk about their finances, but they will admit that the margins on duty-frees were seven or eight times higher than on duty-paid.
P&O Stena, which gets 50% of business through agents, told Travel Weekly the loss of duty-frees meant that the cross-Channel market had returned to being a cyclical business.
“We can no longer support year-round cheap fares with duty-frees,” said Chris Laming. “Higher fares should not be a barrier to good sales and our forward bookings this year are strong,” he said.
Similarly resurgent for the coming months is Hoverspeed which claims forward bookings are up 8% on last year.
French operator Brittany Ferries, which has five routes to France and Spain on the western Channel, estimates that passengers will pay about 11% more this year. One week in a French gite, including ferry travel, would cost from £352 for five people.
Cross-Channel services: no longer a cut-price business
P&O: forward bookings are strong this year