Comment by J.Skidmore: Late booking adding to the woes of operators
The current downturn in bookings is being exacerbated by the general tendency for people to book holidays closer to departure than ever before.
Even lastminute.com recently announced that many of its clients, who traditionally book later than most, were now buying holidays around seven days in advance instead of the usual six weeks before they go.
And tour operators are having sleepless nights as holidaymakers hold off making any commitments for the summer.
Of course the uncertainty in the market has largely contributed to the stand-off but operators have also created this late booking pattern by giving people great bargains if they wait until the last minute.
We all know tales of people who have booked early and then been seated on flights next to other holidaymakers who have got a much better deal by waiting until the last minute.
This trend is a nightmare for tour operators who never know how much they have to discount to ensure that the bookings do actually come in, however late they are.
There’s also another important factor. It robs operators of the vital cash flow they need to survive the winter months.
In this most difficult of years, uncertainty in the market and the trend towards late booking will surely finish off some of the more fly-by-night travel companies. It could also spell the end for some well-run businesses.
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