Package holidays just aren’t ‘cool’

Aspire 2004 conference Special: The big four operators will start offering more flexible package holidays to accommodate consumers who think packages aren’t ‘cool’ – but it comes at a price, says TUI contracting director David Harper. “Our customer has changed and the product needs to change with it”, said Mr Harper. “Our figures show that the number of holidays taken is doubling every ten years or so. But the growth is not in package holidays, it is coming from the low cost sector and self packaged holidays.” He was speaking at the Aspire 2004 event organised by the ITT, on the issue of whether the growth of no-frills airlines and self-packaged holidays would spell the end of the package holiday. Mr Harper said: “I am fairly certain that in 15 year’s time families will still book package holidays because of price and choice. Alongside this customers will also take short breaks that they may self-package.” He said that one problem for operators is that holidaymakers are increasingly regarding the package holiday as unfashionable. He added: “The customers doesn’t want to be seen to book a package holiday because it isn’t cool.” Mr Harper said that vertically integrated companies would find it difficult to offer low prices on holidays under seven days. “Vertically integrated companies like mine have been able to drive down the cost of holidays by maintaining control of the chain. The rigid one and two week blocks helped us keep costs down.” But he said TUI would try to cater for shorter breaks. “We will offer people the three, four or five day holiday, but they will pay about the same as they will for one week. There’s little cost difference for us so there’s no savings to pass on.” “In the past we haven’t been that flexible because people wanted to book in blocks of a week or two. But now we are giving them more options. We are flying from more airports, offering an option on extras like transfers and offering lowcost flights with Thomsonfly.” Mr Harper said that about five million package holidays are still being sold annually in the UK. He quoted a recent MORI poll carried that showed British holidaymakers valued comfort over everything else when booking a holiday, including price. He defined comfort as things like going with a well-known tour operator, having a bonded holiday and going on a holiday recommended by friends. He said: “I don’t think the main reason behind self-packaging is price. I think it is because it is fun to do it yourself. But for the big family holiday of the year people want to go with a well known brand on a bonded holiday.” Mr Harper criticised the web as a method for booking holidays. “The web can be confusing and it is not a one-stop shop – there are hundreds of websites, also without broadband internet speed, you may as well give up”. He also said that in many cases customers couldn’t guarantee the quality of the product they booked online. He said: “The package will stay at the heart of our business and will continue to offer customers the value they want. “The package holiday is not an extinct species – it is an evolving species.” Mr Harper was speaking to an audience of mostly travel students, as well as travel agents, operators and trade associations. The conference took place on 30-31 March at the Crowne Plaza in Liverpool. It was a sell-out with 300 delegates. Report by Ginny McGrath