Package sales rise after two-year slump
Sales of holidays and flights protected by air travel organiser’s licences rose in the 12 months to September 2004 after two years of falls. According to the Civil Aviation Authority, 28 million passengers were ATOL-protected last year – up 1.8 per cent on 2003 – and they paid an average price of £481 for their holidays. The increase came in the sales of package and charter seat business, which was up 2.7 per cent, while ATOL- protected scheduled sales fell by 2.2 per cent. The trend is set to continue this winter. Licences in force for the period suggest a 2 per cent growth in package and charter seat-only business, but this will be mostly offset by a further reduction in scheduled sales. The total business licensed to all ATOL holders at December was only slightly lower than at the same time last year, because capacity reductions by the four vertically-integrated companies has been almost matched by the growth from smaller tour operators and online specialists. At 2,132, the number of licences in force in December was the highest ever, following the introduction of Small Business ATOL arrangements in 2004. Only companies selling less than 500 seats per annum are eligible for these licences. CAA director of consumer protection Richard Jackson said: “We are very encouraged by the response of small firms to Small Business ATOLs and believe it has made ATOLs more cost effective for firms who would not previously have considered them.”
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