ANALYSIS
of applying for a normal ATOL. Tere are now 164 companies in the scheme, limited to companies with turnover of under £1.5m. Tomson Airways announces that from winter 2014-15, all long- haul flights will be operated by the Boeing 787 Dreamliner fol- lowing the aircraft’s successful introduction to service. It claims to offer long-haul passengers a more comfortable service than scheduled rivals British Airways and Virgin Atlantic.
MAY Te Office for National Statistics (ONS) Travel Trends report indicates the number of people booking a package holiday increased by a million in 2013 over 2012, collaborating ABTA’s findings that package sales are growing. ONS says the figure now stands at 15.5 million. Te row over the pricing of holidays during school holiday periods rumbles on, with ABTA calling for staggered school holiday periods to even out demand. A mili- tary coup in Tailand appears to have little effect on tourism, although it’s followed by a curfew in Bangkok.
JUNE No-frills airline Jet2 loses an Appeal Court case, arguing that it should not have to compensate passengers under EU legislation when flights are delayed by technical problems due to ‘extraor- dinary circumstances’. Jet2 then appeals to the Supreme Court, which rules in November that airlines are liable. Airlines are now working through a long backlog of compensation claims. England’s early World Cup elimination leads to an upsurge in demand for summer holidays, mirroring the situation after fail- ures at previous tournaments. Tour operators switch customers away from the Kenyan coast after more terrorist incidents.
JULY Malaysia Airlines flight MH17 is shot down over war-torn Ukraine en route from Amsterdam to Kuala Lumpur, leading to demands from the aviation industry for a review of air space safety. Te airline, still mourning the unexplained disappear- ance of flight MH370 to Beijing in March, considers a rebrand. In further challenges for airlines, new US security measures require passengers to power up devices such as mobile phones and laptops, while some carriers stop flying to Tel Aviv during Israel’s bombardment of Gaza.
AUGUST Agents battle to place late bookings as tour operators sell out peak season capacity, with TUI revealing later that 98% of summer 2014 capacity was sold. Virgin Holidays unveils a new concept called Retail Lite, opening the first of 29 outlets in Tesco stores occupying only 250 square feet.
SEPTEMBER Te Monarch Airlines group, including Cosmos Holidays, is sold to Greybull Capital for £75m, ending its long-established connection with the Switzerland-based Mantegazza family. It seeks 900 redundancies and a pay cut across the board, having previously announced plans to reduce its aircraft fleet from 42 to 32 and cease charter and long-haul operations. At Te Travel Convention in Ljubljana, Slovenia, ABTA announces that 51% of people booking a holiday in the 12 months to July 2014 had booked a package, compared to 46% in 2013 and only 37% in 2010. Travel agents, whether on the high street or online, are taking a greater share. DNATA follows up its purchase of Gold Medal in February by acquiring Stella Travel Services, which owns Gold Medal’s biggest rival, Travel 2, as well as Global and Travelbag. However, the holding company dismisses speculation that it will merge Gold Medal and Travel 2. Tomas Cook announces that
countrybycountry.com
it will review the future of 300 retail shops whose leases are up for renewal in the next three years. It now has around 850 retail shops, having closed over 200 in the last two years. A ‘no’ vote in the Scottish referendum removes uncertainty over future finan- cial protection by ABTA Members north of the border.
OCTOBER Disneyland Paris announces a €1bn rescue plan, including a €420m cash injection by its major shareholder, Te Walt Disney Company. It blames Europe’s economic troubles for its predica- ment, with visitor numbers down to around 14 million a year. Virgin Atlantic reveals that Little Red domestic flights from Heathrow will end this year.
NOVEMBER Royal Caribbean’s latest mega-liner, Quantum of the Seas, is launched in New York with a claim to be ‘the world’s first smart- ship’. Features of the 2,090-stateroom vessel include robotic bar- tenders, super-fast broadband and a circus school with flying trapeze. Tomas Cook’s chief executive Harriet Green leaves unexpectedly after two years in charge, with full year results show- ing earnings up from £13m to £54m and a reduced loss of £115m.
DECEMBER Te fight against Air Passenger Duty (APD) receives another boost as Chancellor George Osborne announces the abolition of the tax for children under 12 travelling economy class from 1 May. Tis will save a family with two children only £26 on European flights, but £142 to the US. APD will be abolished for under-16s from March 2016 in a further boost for the family market. ABTA ends the year with its Travel Trends Report 2015 highlighting a gradual return of consumer confidence and des- tinations to watch. Tose tipped to do well include Cuba, the US Pacific coast, Holland and Austria, while the national media hails weakening of the euro as a further boost for family holidays.
LOOKING AHEAD
General Election: The poll on 7 May is likely to cause economic uncertainty, with many people holding off holiday booking until afterwards. ABTA is calling for all parties to commit to a manifesto for jobs and growth in tourism, including further cuts in Air Passenger Duty (APD).
Airport expansion: The Davies Commission is due to report after the election, with a new runway at Heathrow or Gatwick the likely outcome after proposals for a new ‘Boris Island’ airport in the Thames Estuary were rejected.
Package Travel Directive: The European Parliament is expected to detail plans for reform in the first half of the year. ABTA is pressing for the sale of holidays via websites linked to airlines to be included, to create a level playing field for tour operators and travel agents.
Economic uncertainty: Despite recent strong growth in the UK economy, some experts say the eurozone could slip back into recession, with a knock-on effect for the UK. Oil prices could rise again and share prices could be put at risk, but pension reform means some people could take a lump sum rather than an annuity — and spend it on travel.
February 2015 ABTA Magazine 27
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