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Big Four lose share to online agents
Online agents are increasing their share of the flights-only market at the expense of the Big Four operators. According to figures released by the CAA, three of the Big Four cut the number of passengers they were licensed to carry in Summer 2003. Thomas Cook was the only one to add capacity, of 8%, which put it third behind TUI and MyTravel in the table of total passengers licensed to travel in Summer 2003. The biggest growth area was online specialists, according to the CAA, which performed strongly in 2003. Helen Simpson, Director of Consumer Protection at the CAA, said: “Sales in 2003 were probably better than many people expected in view of the external factors like the war in Iraq and the hot summer, but the basically soft market reflected in poor prices. Volume was also influenced by increased sales directly from airlines without ATOL protection.” The only online company in the top ten was the US giant, InterActive Corporation, which owns Expedia. It was licensed to carry over half a million passengers in Summer 2003, an increase of 148% year-on-year. The figures show that 17.5 million passengers went on ATOL protected flights and holidays in Summer 2003, down 1% from the previous year. Overall, ATOL protected scheduled flight-only sales fell 5% year-on-year in Summer 2003, and package and charter remained stable. CAA predicts 5% growth in package and charter sector for Winter 2003/2004, but also a further reduction in schedule seat sales. The average price paid for a holiday was £448.
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