16 May 2008

Big shift in way holidays are bought and sold - Youtravel.com

Popular package holiday destinations have seen the highest growth in accommodation-only sales in the past year, according to supplier Youtravel.com

While Sharm El Shiekh maintained its position as the companyÃ¢â¬â¢s top destination for the second year, Costa del Sol, Lanzarote and Fuerteventura all saw significant growth.

The company, which has seen its portfolio of contracted hotels grow by 1,000 to 3,500 since its launch in October 2006, believes the popularity of mainstream sun destinations means that dynamic packaging, while making a slower start than some had expected, was a trend that is here to stay.

Sales and marketing director Paul Riches said: Ã¢â¬ÅâœTo see the growth thatÃ¢â¬â¢s coming through from the staple package holiday destinations is indicative that there has been a shift in the way that holidays are being bought and sold in the UK.

"Dynamic packaging is not a blip, itÃ¢â¬â¢s a real trend and is here to stay."

He revealed that the company, which directly contracts all the properties it features, was to expand the number of properties it offers on an exclusive basis, up from a level of 25%.

"We are undergoing a major product review at the moment and we will be taking off some properties as well as adding new ones," said Riches.

"WeÃ¢â¬â¢ve been doing this over the past 18 months but now want to have a total overhaul of the products we offer to our trade partners."

He revealed that more than three quarters of the companyÃ¢â¬â¢s business is now generated online.

"Agents are moving away from traditional advertising on TV and then booking through a call centre; these days it has moved to a web and call centre presence," he said.

Riches added: "We are going to be looking at securing global distribution deals in the coming months and really focussing on maintaining our current sales and margin levels."

Turnover is forecast to almost double to 170 million euros this year, with international sales to make up a quarter of business by the end of the companyÃ¢â¬â¢s second year.

by Phil Davies