Operators face tough lates market

A tour operator has warned some companies may struggle to survive as rumours persist the lates market for September is down by up to 20%.

Cadogan Holidays managing director Gary David said his operator’s sales were down by 16% for September, following poor sales in August in which passenger numbers for Cadogan’s charter programme to Tunisia were down 22%. Revenues for the same programme fell 34%. As a result, Cadogan has scrapped the programme for September.

With autumn sales across the market continuing to be sluggish, David warned: “There will be lots of tour operators struggling at the end of the year.”

Mark Warner head of marketing Nigel Ragg agreed September has proved tough and has followed a difficult  summer for the operator, in which almost 8% of customers booked just seven days before departure.

Discounts of up to £100 have been necessary to attract customers.

Industry sources suggest sales for September for the big four are 20% down.

First Choice sales director Martin Froggatt agreed the September market had been flagging but disputed it was as bad as rumours suggested. He said: “We were down in lates last week, but not majorly down, and it is not by 20%.”

A Thomas Cook spokeswoman agreed, saying: “It has been a difficult market. There’s less availability and capacity for tour operators. We are still performing probably better than most.”

Despite a tough market Thomson retail and commercial director Derek Jones said: “We’re about flat year-on-year which is good, while in the winter we’re where we need to be.”