10 June 2009

Mixed view on industry trading emerges from ITT conference

UK travel leaders gathering for the Institute of Travel & Tourism overseas conference in Dubai have voiced mixed messages over improved trading by 2010.

Some expressed cautious optimism that the worst of the recession would be over.

But TUI Travel customer services director Tim Williamson predicted that next year could be slightly worse for the industry.

And The Co-operative Travel managing director Mike Greenacre predicted that there would be fewer operators and agents by next March.

He called for a single travel industry voice to lobby efficiently against taxes such as Air Passenger Duty.

Kuoni group chief executive Peter Rothwell described the late sales market for this year as looking strong and said the operator’s margins were not adversely affected by discounting as price cuts were mainly funded by hotels.

When quizzed on the company’s distribution strategy, Rothwell said there would be a maximum of 10 Kuoni shops in the UK. They would be plush outlets designed to underline the company’s brand strengths.

Williamson said he was optimistic about ten and 11-night holidays, while all inclusive deals were massively up and trips to Mexico have recovered following April swine flu outbreak.

Gold Medal Travel managing director Terry Fisher called on hotels not to flirt with going direct during the downturn.

Jumeriah Hotels chief executive Guy Crawford said occupancy rates in beach hotels was good and 2010 looked slightly better.