29 December 2009

Package holiday price war predicted

A package holiday price war is being predicted as companies seek to capitalise on a recovering market in 2010.

Turkey is leading the way as value-conscious travellers seek to avoid eurozone holiday spots, according to the Co-operative Travel

The leading travel retailer reports that bookings across top 20 destinations for next summer have seen a 26% increase in the last three months as the market begins to recover.

Dalaman has seen an increase of 82% and has taken over from Majorca as the number one overseas destination for UK holidaymakers in 2010.

The average price of a package holiday to Dalaman is £516, £79 per person lower than the average break to Majorca (£595), according to the travel agency group.

Retail distribution director Trevor Davis said: "As the holiday sector recovers, the battle for bookers will intensify with companies seeking to increase their market share after a challenging 12 months.

"We’re offering as much as 20% off thousands of holidays or free child places, along with very low deposits of £50 per person to allow people to book early and take advantage of the deals available."

But deals and choices for holidaymakers will quickly disappear.

"If the current increase in bookings continues and confidence returns to the market, we will see fewer bargain deals being offered," said Davis.

"What’s more, many operators are reducing capacity and this, combined with the recent high profile collapses of major travel businesses, will mean that there are fewer holidays for sale when it comes to people wanting late deals.

"Savvy bookers should take advantage of the deals available now and choose their destination with care."

DETAILS OF BOOKINGS FOR SUMMER 2010

Position (2010 Holiday bookings)	Destination	Increase in Bookings %*	Average per person price**
1.	Dalaman (Turkey)	82%	£516
2.	Majorca	12%	£595
3.	Orlando	28%	£998
4.	Costa Blanca	17%	£454
5.	Crete	3%	£651
6.	Sharm El Sheikh	71%	£760
7.	Bodrum (Turkey)	72%	£498
8.	Ibiza	5%	£485
9.	Larnaca (Cyprus)	9%	£665
10.	Zante	-11%	£476
11.	Tenerife	9%	£621
12.	Corfu	9%	£564
13.	Antalya (Turkey)	69%	£803
14.	Paphos (Cyprus)	23%	£849
15.	Menorca	27%	£560
16.	Rhodes	0%	£565
17.	Algarve	0%	£525
18.	Costa Del Sol	19%	£578
19.	Bourgas (Bulgaria)	52%	£533
20.	Las Vegas	61%	£1,050
OVERALL		26%	£630