First Choice capacity cuts pay off
First Choice profits for 2002 are in line with expectations, and bookings for this Winter and next Summer are roughly in line with last year.
The operator reported that holidays sold for Summer 2002 were as expected, 11 percent behind Summer 2001. First Choice claims that its approach of “prudent capacity management combined with tight cost control” has maintained or increased profit margins, and will continue to be its strategy next year.
Bookings for this Winter are three percent behind last Winter, although margins are in line. Looking back to the market pre-September 11, this Winter is six percent behind Winter 2000/2001.
The number of holidays sold for next Summer is just two percent ahead of Summer 2002, but two percent behind Summer 2001. However, margins are “significantly ahead” of both the previous summers. A First Choice spokesperson told TravelMole that this was due to the reduction in capacity, leaving fewer unsold holidays.
The most improving market is Canada, where demand decreased significantly following September 11. First Choice reported that a new management team and change of focus to inclusive tours has boosted Winter sales to 82 percent ahead of sales at this time last year. Summer 2003 is not yet on sale in Canada.
Read our previous stories:
23-Oct-2002 First Choice’s Wimbleton: agents must improve selling techniques
22-Oct-2002 Families will seek Spring and Autumn sun
27-Sept-2002 First Choice to boost online content
26-Sept-2002 First Choice signs Irish deal with Comtec
23-Sept-2002 First Choice records 100,000th web booker
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