Ski price rises to be minimal, claims Crystal
Tuesday, 01 Jul, 2009
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Crystal Ski managing director Mathew Prior has refuted claims that ski prices will soar next season.
Some operators, including specialist Erna Low, recently predicted prices would rocket by an average of 15 per cent because companies had trimmed capacity and were suffering the effects of the weak pound against the Euro.
But Prior, speaking at the launch of the ‘Ski Industry Report 2009’ said it was not the time to start putting up prices. He said TUI, the largest operator with its brands Crystal, Thomson and First Choice, accounting for 240,000 bookings, around 40 per cent of the tour operator market, would put up prices by only 2-3 per cent, despite costs rising by 7 per cent.
“I don’t think this is the year to put prices up because we have to continue to offer great value for money in the current climate,” he said. “Price increases will be kept to an absolute minimum.”
Prior confirmed that TUI had dramatically cut back its number of ski chalets but denied it was getting out of this section of the market.
“Chalets account for less than 15 per cent of our business and we’ve taken about 40 per cent of our stock of chalets out for next season,” he said. “Some of them were just not economically viable. In March some chalets were unsold and chalet holidays were being sold for £199, which is just totally unsustainable.
“We’ve taken a big axe to the programme this year to make way for our Crystal Ski Plus packages (see separate story). But that’s it for the cuts and chalets are still an important part of the business.”
The ski market fell by around 13 per cent last season, to 2003-04 levels of just over 1 million passengers. Tour operators accounted for around 600,000 passengers.
Prior said France’s share of bookings remained at around 37 per cent, but some of the higher resorts suffered because there were good snow conditions at lower levels. Austria had a good season because their resorts generally offered cheaper places to eat and drink than competitors in France.
Bookings to the US and Canada fell because the weak pound against the dollar made their resorts look expensive compared to those in Europe.
by Jeremy Skidmore (www.jeremyskidmore.com)
Jeremy Skidmore
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