09 October 2009

TUI boss lambasts Ã¢â¬ËœstaycationsÃ¢â¬â¢

TUI Travel chief Peter Long has hit back at claims from Hoseasons boss Richard Carrick that overseas operators are naïve and burying their heads in the sand over the impact of recession on consumer holiday habits.

The boss of the UK’s largest tour operating group stressed that he was taking a "prudent" view of next year.

But he lambasted the term staycation as "stupid" and said people who took holidays in the UK this year were already booking to go abroad in search of the sun in 2010.

The CEO of TUI Travel, speaking at the ABTA Travel Convention in Barcelona, admitted that the pain of the economic downturn would be ongoing and that is why his group was taking a conservative view going forward.

"There is still a very strong desire for customers to take their holidays, however bookings are much closer to departure," he said, adding that the industry’s roller coaster ride had been "steeper and more scary" this year.

Long pointed to rising oil prices and the weakness of sterling as the overriding problems for TUI and the travel industry going forward together with aligning capacity to demand.

"The biggest problem in our industry is over-supply," he told convention delegates.

Long described TUI’s relationship with travel agents as being "sacrosanct" and said that would never change.

When questioned about cutting commission to seven per cent four years ago, Long described this as the "entry point".

"Important producers for us earn considerably more," he said. "It is not our intention to squeeze anybody."

by Phil Davies

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Staycation

The numbers don't lie. This year has seen the largest shift from overseas to domestic tourism for decades, far greater than during the last recession. That's why there's a word for it.

By Daniel Yates, Monday, October 12, 2009