What 2010 might have in store for the travel industry
Monday, 29 Dec, 2009
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TravelMole Guest Comment by Thomson and First Choice managing director Dermot Blastland
It’s that time of the year when we dust off our crystal balls and are asked what we think 2010 might have in store.
One thing is for sure, it’s going to be another year for the doomsayers to announce how the package holiday has had its day, as the recession shows no sign of letting up.
Throw a World Cup, the possibility of a national election and the review of travel industry legislation, into the mix, and pundits left, right and centre will predict that the industry will be in for an exciting ride.
But at TUI Travel we’re going into 2010 knowing that our customers still insist that a holiday is an important purchase for them and our recent results clearly tell you all you need to know about the much-hyped ‘stay-cation’. Even the boss of Butlin’s was in the papers recently admitting that the ‘stay-cation’ is a myth. I couldn’t agree more…
One of the strengths of our business is our ability to adapt capacity to suit demand, thanks to our flexible business model. We manage this day in and day out and next year will be no different – we will ensure that we have the right product on sale at the right time, at the right price.
One example is our increased capacity for 10 and 11 night durations – up by 21% for next summer. We saw that customers increasingly wanted this option and have responded.
2009 saw a trend for later bookings, although some people still want to book early. We enter the year, fully prepared for those customers who want to book early, with some fantastic early booking offers out there, such as for families wanting to stay at one of First Choice’s flagship holiday villages during the summer holidays. However, for those who want to book late, we’ll have sensibly priced trips available.
Having proven themselves the ideal holiday for budget conscious travellers, all-inclusive holidays will continue to gain in popularity in 2010.
We’ve increased our portfolio of all-inclusive product for 2010 and also added more full-board and full-board plus. And it’s not just at the lower end of the market – Thomson’s five-star Sensatori resorts in Mexico, Crete and, from May 2010, Tenerife, offer luxury accommodation on a full-board plus or ‘gourmet-inclusive’ basis at a price that’s far more affordable than ever before.
As for destinations, we’re expecting the top short haul destinations for summer 2010 to be the Balearics, mainland Spain, the Algarve, Italy and Madeira.
For mid haul, Greece, the Canaries, Turkey, Cyprus and Egypt look set to top the list.
Non-EU countries, for example Egypt and Turkey, will continue to be large growth markets, but it’s important not to overlook the Euro destinations, which still offer exceptional value.
So who will be the winners in 2010? Well, aside from Jermain Defoe scoring a hat trick in the World Cup final, it’s those companies such as ourselves that offer value for money, excellent levels of customer service and a genuinely differentiated product offering who will, I believe, have the edge.
Customer service is key to our business and more important than ever in a tough trading environment.
Flexibility is fundamentally key and those financially robust companies that ensure they’ve got the right product out at the right time, and are capable of responding quickly to changing market needs will reap the rewards.
All in all, our business has coped admirably with adapting to changing consumer and economic trends over the years.
Next year will be tough for some, but I’m confident that First Choice and Thomson have got the right blend of value and product to suit all types of holidaymaker looking to take that precious time away from it all in 2010.
Phil Davies
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