Summer bookings hold firm despite challenges

Booking figures to the end of April suggest the summer holiday market has so far withstood the challenge of volcanic ash, the uncertainty of the election and strike threats.

Outbound bookings for summer 2010 were 2% down year on year at the end of last month, the same as in March.

Industry analyst GfK Ascent-MI reported the overall steadiness in sales despite a 5% year-on-year fall in bookings to April – a decline it described as “significant”.

Managing director Sarah Smalley said: “We suspect a number of factors – the ash, the electoral uncertainty and a fall in consumer confidence.”

Sales revenue remained ahead of last year, suggesting the shortfall is in line with reductions in capacity.

Smalley said: “Revenue continues to be in a strong position, despite the economy.”

At least part of the reason is a continuing strong performance by all-inclusive holidays.

This is in line with the market updates issued by Tui Travel and Thomas Cook earlier this month, when both reported increases in average selling price in the UK – reflecting a shift in the choice of holidays, rather than a straightforward increase in prices.

The year-on-year decrease in summer 2010 bookings has improved from -6% at the end of December 2009 and -4% at the end of January, leading to an expectation that the market will finish the summer just 2% down on 2009 – a strong performance in the circumstances and one that would mean fewer bargains for consumers in the late-booking marketing.

The top five ‘destinations’ for growth so far this summer have been Turkey, Tunisia, Egypt, ocean cruises and the western US.

Bookings to end of April

• The family market was slightly down on the overall booking trend, lagging 3% on last year, at the end of April. However, family short breaks of six nights or fewer were up 11% year on year, whereas  short breaks for the adult market declined.


• The shift in durations appears to be confirmed by a decline in the number of 14-night holidays sold against increased revenue from sales of eight to 13-night durations. The family market, of four or more passengers, accounts for 42% of the market.


• Sales of holidays costing more than £600 were up, despite the 2% fall in total sales.


• Departures scheduled for August were up year on year and those in July level with 2009.