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Cheaper package holidays predicted following TUI/First Choice deal
Greater cost efficiencies achieved through the merger of TUI and First Choice could lead to cheaper package holidays, the UK’s largest independent travel retailer believes.
The boss of the Co-operative Travel Trading Group, which represents 570 outlets, seven call centres and a homeworking division, believes the merger was “an inevitable consequence of market pressure”.
Chief operating officer Mike Greenacre said: “Both companies operate in a rapidly changing marketplace and it’s easy to understand why this merger makes commercial sense to both parties.
“This is potentially good news for the package holiday which has struggled over the last two years. The merger will inevitably lead to greater cost efficiencies which could mean keener pricing for packages which carry with them, complete consumer protection.”
He said the coming together of the two companies came as no surprise, coming hot on the heels of the merger between Thomas Cook and MyTravel.
“However, it is far too early to say what this merger means commercially as far as CTTG is concerned,” added Greenacre.
“We will be holding discussions in the coming weeks with the intention of establishing a strong working partnership with the newly merged business.”
CTTG members sell three million holidays a year with a combined travel sales of over £1 billion a year and more than 11% of the overseas package holiday market.
Meanwhile, Kayte Williams, holidays manager at travelsupermarket.com said: “This has come as no real surprise as First Choice had previously been in talks with both My Travel and Thomas Cook before the two companies announced their own planned merger last month.
“Despite the four main players in the market potentially becoming two, customers should see only benefits on the horizon, including greater cost competitiveness, improved, content rich websites and greater overall choice.
“It will be interesting to see if yesterday’s announcement will prompt any further changes within the market.”
by Phil Davies
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