First Choice making capacity cuts
First Choice has announced it will be cutting capacity in May and June due to a slump in bookings.
In a statement the operator said: “We have seen a significant slowdown in the rate of Summer bookings across all of our businesses in recent weeks. We are therefore adjusting our low season capacity, particularly in May and June, to deal with the likely lower level of bookings.”
First Choice reported that Summer bookings are four percent behind last year, and Winter bookings were two percent short of last year. The operator is blaming uncertainty over the situation in the Middle East for the reluctance by people to book Summer holidays.
First Choice managed to maintain profit margins last Summer by adopting a similar strategy of “prudent capacity management”.
First Choice chairman, Ian Clubb will say at today’s AGM: “We have seen a challenging start to the year. However, overall performance to date is in line with our expectations.”
Read our previous stories:
11-Dec-2002
First Choice suffers slip in profits
25-Nov-2002 Ryan leaves First Choice
28-Oct-2002 First Choice capacity cuts pay off
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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