Great expectations…but a poor start

HOPES of an upturn in 2004 summer sales remain uncertain after a weak start to the peak booking period.

Early indications put the post-Christmas market at 10% down on last year, but it has improved to 6%-8% down. Operators claimed seat-only is the toughest market.

Both TUI UK and Thomas Cook performed better than rivals MyTravel and First Choice following large-scale campaigns, with Lunn Poly the most aggressive high street player.

The Co-ops also improved market share “significantly” with their £50-off deal.

Market share for the big four is 36% for TUI UK, 24% for First Choice, 23% for Airtours and 19% for Thomas Cook.

TUI UK managing director Chris Mottershead said: “We’re out-selling our nearest competitor by 50%.”

Rumours that Lunn Poly staff were offering 16% shop discounts were dismissed. Commercial director Derek Jones said this could crop up on rare occasions when the Price Beat offer matched quotes from other shops, but stressed: “We’re not in the business of giving away more than we earn.”

Thomas Cook director of trade relations Ian Derbyshire said: “We’ve gained market share but we’d all like the market to be more buoyant.”

Sources suggested Thomas Cook had failed to push market share as high as expected because holidaymakers were more concerned with the upfront price than free flights.

Experts say 16% growth is required to bring the market back to 2002 levels.