Long haul sparks First Choice growth
First Choice has reported a strong performance across its businesses with long haul and specialist divisions playing an increasingly important role.
In a trading statement, the operator said summer sales in mainstream holidays increased 13%, fuelled by an 18% growth in long haul travel and 16% in medium haul. Short haul, which now represents less than 30% of its mainstream revenues, climbed 6%.
Margins were also up, First Choice said, adding it was in line for “double digit” earnings growth in line with expectations.
Revenues of speciailst holidays jumped 13% with passenger numbers up 14% while sales of activity holidays grew 4%.
“Trading across Europe has been particularly pleasing in light of certain of key destinations being impacted by the Egypt bombings, tsunami and hurricanes in the Caribbean,” the statement said.
In winter, capacity in mainstream holidays has been reduced by 6%, in line with the operator’s policy of “not to chase volume at unprofitable margins.”
Medium haul and short haul revenues have tumbled 17% and 13% respectively with passenger numbers down 23% and 20%. Sales of long haul holidays have climbed 39% and passenger numbers by 26%.
For summer 2006, bookings are down although revenues and margins are up, the operator said.
First Choice chief executive Peter Long said: “We are pleased with the way the current summer season has gone across all our buisnesses. We anticipated that consumer demand for flight-only and generic three star winter holidays would be weaker and we have adjusted capacity accordingly.”
He said it was on course for double-digit earnings growth in the year ending October 31 while progress was being made to achieve its target of hitting a 5% operating margin.
Report by Steve Jones
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
Phocuswright reveals the world's largest travel markets in volume in 2025
Cyclone in Sri Lanka had limited effect on tourism in contrary to media reports
Higher departure tax and visa cost, e-arrival card: Japan unleashes the fiscal weapon against tourists
Singapore to forbid entry to undesirable travelers with new no-boarding directive
Euromonitor International unveils world’s top 100 city destinations for 2025