ABTA Convention Special: Travel companies have suffered a tough year with bookings and margins considerably down on 2001.
Thomas Cook retail chief Manny Fontenla-Novoa admitted a slump of up to 10% in summer bookings with a corresponding fall in revenue.
“People are leaving it late to book and also families are not booking in the same numbers, so Spain has suffered,” he said.
“After September 11, many destinations reduced prices to attract visitors. But Spain took the opposite view, thinking that people want to visit a destination that was perceived as safe, and put up prices. People have voted with their feet and stayed away.”
Summer 2003 bookings are currently 10% down but have improved in recent months.
The only bright spot on the horizon is winter 2002/03, which Fontenla-Novoa said was booking strongly.
“It’s less of a family market and it’s more robust,” said Fontenla-Novoa.
Read the latest news from the ABTA Cairo Convention 2002:
Rivals consider switching off MyTravel
Carrick makes robust defence of MyTravel
BA chief Rod Eddington: We got it wrong
New rule on consumer protection
ABTA against new airport in the South East
TUI plans image boost for Thomson
JMC an expensive waste – some might say
Most package holidays still booked with agents
Differentiation the key for agents
Consumers in the north ‘particularly resistant to agent fees’
BA whittled down agent calls with premium rate number
No-frills carriers adopt subtle differences to survive
Families will seek Spring and Autumn sun
