Cosmos to ditch hotel guarantees for Spain

Cosmos is to scrap all hotel guarantees in Spain for summer 2006 in a move that could ultimately lead to brochures being replaced by catalogues.

The move is the latest stage in Cosmos’ development of a more flexible business incorporating dynamic packaging.

Cosmos overseas purchasing and operations director Hugh Morgan told the Spanish Tourism Exchange for Professionals guarantees had made up 85% of business to Spain six years ago, but now the model had changed. “From next summer, there will be no more guarantees,” he said.

Spain represents around 30% of Cosmos’ business – half the amount it represented two years ago. The operator still has some guarantees in destinations such as Greece where it remains cost-effective.

Morgan revealed he would like to ditch brochures completely to improve cost-effectiveness. “Brochures are a huge expense running into millions, with each costing around 50p. I’d love to have no brochures as we can put it all on the web.”

Cosmos is removing prices from its villa programme this summer, instead including price inserts in brochure ‘catalogues’. Morgan said it was “not beyond the realms of possibility” the practice could be extended across all its brochures.