United Kingdom
United States
Asia Pacific
First Choice cuts summer capacity
First Choice has cut summer capacity by 5% after revealing that mainstream package bookings are down by the same level.
The cuts are focused on the May and June low season, the group said in a trading update. First Choice said a number of “negative external factors” including the outbreak of bird flu in Turkey hit demand during the January peak booking period.
Revenues for summer ’06 are 3% higher than last year “reflecting stronger pricing and the remixing of the business,” a statement said. “Margins are in line with our expectations and ahead of last year, having absorbed incremental fuel costs.”
First Choice also disclosed that 68% of bookings are now coming via in-house channels, a rise of eight percentage points year-on-year.
A breakdown of the figures for summer shows shorthaul mainstream holiday passengers booked down by 7%, medium haul down 11% but long haul up 23%.
Capacity has also been taken out of the group’s specialist holidays sector, which has seen summer bookings down 14% and revenues down by 11%.
The activity holidays sector has seen revenues ahead by 8% for summer and 12% for winter 2005-06.
Volumes in the online destination services sector were described as “strong” for both winter and summer, with B2C accommodation provider Hotelopia winning a contract to proviude online accommodation for Spanair from the summer.
Chairman Sir Michael Hodgkinson said: “We remain confident that our business model will allow us to continue to make progress this year towards out 5% operating margin target and are satisfied with the progress made so far in 2005-06.
“The introduction of our new long haul service in the mainstream holidays sector is proving very popular with our customers and we have a strong pipeline of acquisition opportunities in niche growth segments of the travel market that we are activety pursuing.”
Related News Stories:
Phil Davies
Kittipong Prapattong’s Plan for Thailand’s Tourism Growth: Taxes, Visas, and Campaigns
James Jin: Didatravel’s Journey from China to Global Reach and the Impact of AI on Travel
Darien Schaefer on Pensacola’s Evolution: From Small Town to Global Destination
Florida Tourism’s Next Frontier: Dana Young on Expanding Beyond the Classics
Patrick Harrison on Tampa Bay Tourism’s Resilience and Marketing Strategy
Bubba O’Keefe on Clarksdale’s Vibrant Music Scene
Commemorating Elvis and Embracing Tupelo’s Culture with Jennie Bradford Curlee
Craig Ray and the Expansion of the Blues Trail
Presenting Mississippi’s Cultural Trails with Katie Coats
Robert Terrell: A Journey Through BB King’s Influence
Rochelle Hicks: Celebrating Mississippi’s Musical Legacy
Exploring Jacksonville with Katie Mitura: The Flip Side of Florida
Dozens fall ill in P&O Cruises ship outbreak
Turkish Airlines flight in emergency landing after pilot dies
Boy falls to death on cruise ship
Unexpected wave rocks cruise ship
Storm Lilian travel chaos as bank holiday flights cancelled