Online growth drives First Choice sales target
First Choice is to aggressively drive more sales in-house – both online and through its own retail network – over the next three years, chief executive Peter Long has said.
“We have increased our control of distribution to 56% this year and that will rise to 60% in 2006 and to 75% by 2008,” he said.
Long confirmed online will be a key focus, revealing that 25% of all 2005 mainstream summer holiday sales were booked over the internet – up from 15% in 2004.
“This isn’t being driven by the tour operator but by consumers. We are not forcefeeding anything,” he said. “Many people still want to book through a travel agent but we are in an ever-changing world.”
He denied the group would follow other mass market operators by closing shops despite saying it would “adjust our portfolio to meet our needs.”
“That could mean opening in certain locations,” he said. “You musn’t forget we have a smaller retail network. You may well see us opening more shops than closing them down.”
Long said one shop opened in 2005, seven were closed where profit levels were “not satisfactory” and four concessions not renewed.
Turning to the acqusitions of US operators Grand Expeditions and INTRAV, Long said it gives First Choice a greater foothold in the North American market.
“It takes us into a different sector to the student market that we are already in,” he said. “Grand Expeditions is popular with baby boomers and the grey market which make up more than a quarter of the US population. It is an attractive market to be in.”
On currrent trading, winter long haul volumes and revenue are up more than 30%, he said, while flight only, three-star market continues to stuggle with capacity reduced accordingly.
The pattern is repeated in summer with long haul performing strongly but medium haul destinations of Egypt and Turkey hit by terrorist attacks.
Report by Steve Jones
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