High street ski bookings in decline
The top three vertically-integrated operators reported a slump in wintersports bookings last year, indicating a decline in the influence of high street multiples, according to market leader Crystal.
During winter 2003/04, Thomson’s bookings fell to 75,000 from 77,000 the previous year; First Choice was down to 68,000 from 77,000 and Neilson, part of Thomas Cook, saw sales fall to 53,000 to 55,000.
“This would appear to indicate a move away from the high street,” said Stewart McLeod, managing director of Crystal, at the launch of its Ski and Snowboard Industry Report 2004.
“These are the three brands which get heavily pushed by the multiples, so their influence is declining.”
Crystal’s bookings rose to 140,000 from 133,000 but McLeod denied this was due to the influence of Lunn Poly, even though both companies, along with Thomson, are members of TUI.
“Crystal is part of a vertically integrated company, but when you go into Lunn Poly, the company it pushes is Thomson. I don’t think the growth of Crystal can be attributed to Lunn Poly,” said McLeod.
“It is more a case of Crystal and Inghams, which also saw an increase in bookings, being able to offer people a wide range of ski and snowboard holidays.”
McLeod estimated that the Internet now accounted for around 14 per cent of all bookings and added that for January 2004, Crystal’s website received 157,000 hits, up 175 per cent on the same month in 2003. He refused to give booking figures.
“Booking levels on the Internet are definitely growing,” said McLeod. “Skiers tend to know what they want and are not scared of spending money on line.”
McLeod said Crystal intended to be the first operator to put ski brochures on line, but did not say when this would happen.
“It will result in around 20 per cent fewer brochures needing to be produced,” he predicted.
McLeod said bookings had begun strongly for the 2004/05 season and the strong sterling/dollar exchange rate would lead to an increase in North America sales.
He added the growth in the ski market had been created by the aggressive pricing strategies of Ryanair and easyJet and predicted prices would rise for popular week-long breaks.
Last winter, package holiday bookings to France remained constant while sales to Andorra and Switzerland fell.
“Bulgaria is excellent value and has become the new Andorra, while package holiday sales to Switzerland have fallen because more people have travelled independently,” said McLeod.
Report by Jeremy Skidmore
Ginny McGrath
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