Price war is averted

OPERATORS claim a major price war on late bookings has been averted thanks to dismal weather and the start of school holidays kick-starting summer sales.

Many feared a bloodbath, with operators slashing prices to stimulate demand because of poor sales.

Weekly sales for packages are up about 2% on last year but cumulative summer sales remain 8% down.

Operators admit there are some “very good deals”, however. Late packages for £85 for seven nights’ self-catering in Spain were available for same-day departures as Travel Weekly went to press.

Thomas Cook director of trade relations Ian Derbyshire said: “There’s definitely a pick-up but there are still good deals, although I wouldn’t say they are the lowest ever.”

He claimed sales had picked up since the start of Thomas Cook’s 1970s campaign but said weather and the school holidays were factors. “We’re seeing prices harden because demand is coming back.”

TUI UK commercial director Derek Jones said prices were now at “reasonable” levels.

“We held our nerve through May and June. If you go to daft prices, it makes the peaks very difficult.”

But Sunvil managing director Noel Josephides claimed there was still far too much capacity. Sunvil is offering lates at an all-time low of £189 for seven nights’ self-catering in Greece.

“This is lower than we’ve ever been, but it is still £120 too expensive in the current market,” said Josephides. “The only way to reverse this trend for discounting is to drastically cut capacity.”

He admitted lates had been “helped by the weather” with Sunvil sales on a daily basis 20%-30% up, but said: “We need to be running at double last year to salvage this year.”