The boss of Jet2.com and Jet2holidays has called on those in the trade to hold their nerve in the lates market and avoid discounts.
Steve Heapy, chief executive, said he was “comfortable” with the sister brands’ increased capacity and sales so far – but cautioned against price cuts.
Speaking as the brands launched operations at Luton airport, he told a Travel Weekly webcast: “If you start discounting too early, then you condition people to expect discounting closer to departure, and it becomes a self-fulfilling prophecy that it’s a late market.
“People have to try to hold their nerve and not start a downward spiral of pricing, which isn’t good for the industry, because we all need to make profits.”
Asked if he is concerned about others in the industry cutting prices, he said: “I would hope that isn’t the case…but you’ve got to see how things pan out…hold your nerve.
“It looks like it might be a late market so don’t jump too early.”
He added: “Dropping the price should be one of the last things you do.
“If sales are slow, you should be marketing and trying to attract customers; trying to persuade them to book a holiday; give them a reason to book a holiday.”
He said Jet2’s capacity for summer 2025 has increased by 9% – with about 5% accounted for by new bases such as Luton, Liverpool and Bournemouth.
“I am pretty comfortable with where we are. It has been a consistent sales period so far,” he explained.
He cited economic reports which show how consumers are spending less on certain items such as lottery tickets, streaming services and nights out – but holiday spending remains “very consistent”.
“It is not a commoditised product anymore. It’s an essential purchase,” he said.
Asked about price and tax rises coming in during April, he said customers might be opting for shorter durations to keep within budget.
“That is something we are very good at, because we do holidays of any duration. It is a very strong part of our offering,” he said.
He also highlighted how the short-haul rather than long-haul market is also suited to holidaymakers on a budget: “A lot of people, particularly when they’re trying to manage a budget [they] want to stay for a fewer number of days.
“Short-haul becomes more attractive because you spend less time on an aircraft.
“Short-haul is better because you get more time in resort.”
He hoped the government avoids further tax increases this year, adding: “If they do, then we’ve got to hope that people still see holidays as an essential purchase and perhaps spend a bit less on discretionary things.
“The holiday product is very resilient. It is seen very much as something you need to do, and hopefully that will continue.”