12 November 2008

Teletext Holidays expands despite 'grim' outlook

Teletext Holidays is to enter the cruise arena as part of an overall expansion into specialist travel sectors despite a prediction of Ã¢â¬ÅâœgrimÃ¢â¬~ trading well into 2009.

The company believes it can help drive sales from new to cruise customers, particularly outside London and the South East.

The plans are due to be outlined in the next three weeks in preparation for a launch in the new year.

Other areas due for expansion include ski, luxury holidays and UK breaks.

Managing director Matt Cheevers outlined the plans for the company to provide an increased range of value for money offers against a backdrop of a tough trading environment.

Closer co-operation between Teletext Holidays and the national and regional newspapers owned by parent company Associated Newspapers Ã¢â¬' which includes the Mail and Mail on Sunday Ã¢â¬' is planned to further extend the reach of travel offers.

Cheevers revealed the economic downturn had led to the company delaying marketing spend until next year because Ã¢â¬ÅâœitÃ¢â¬â¢s no point trying to chase the marketÃ¢â¬~.

He said he expected the worst overall Christmas for non-travel spend, which will have a knock-on effect on 2009 holiday sales in what would normally be the start of the peak booking period in January.

Ã¢â¬ÅâœThere are a huge number of small, independent companies hanging on for January to arrive but people are going to be in for a shock,Ã¢â¬~ he predicted. Ã¢â¬ÅâœWe are finding trading incredibly tough and we can see more consolidation and a high level of failures.

Ã¢â¬ÅâœThe outlook is very grim for the next six months.Ã¢â¬~

Cheevers said the Teletext Holidays business model had been changed over the past 18 months to move away from a reliance on late sales of discounted Mediterranean package holidays.

Ã¢â¬ÅâœThe Teletext brand has always been about value, thatÃ¢â¬â¢s what we built the business on. Now we are trying to re-invent ourselves to bring that value proposition into areas such as ski and cruise," he said.

Ã¢â¬ÅâœWe are strong in families and weighted towards the north, so can do something to encourage first time cruisers.Ã¢â¬~

He conceded that winter sports holidays would not be immune from economic woes, but believed there would still be a Ã¢â¬Åâœhuge trancheÃ¢â¬~ of people who canÃ¢â¬â¢t do without a ski holiday. Good value destinations such as Bulgaria and North America are set to benefit, Cheevers predicted.

And there could be a shift towards weekend and accommodation-only ski deals if bookings do not materialise as expected in the first half of the winter season.

Ã¢â¬ÅâœAt the moment the hotelisers are focussing on sven-night durations as this is what makes them their money. However, if demand is less than we have predicted then more beds will be released for the weekend break and accommodation-only market,Ã¢â¬~ he said.

The volume of ski holidays available has doubled to more than 800,000 this winter as Teletext Holidays increases the number fo suppliers it works with from 10 to 21 including operators such as Inghams for the first time.

by Phil Davies