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Lates crunch as Brits seek ‘Turkey prices in Spain’
Lee Hayhurst
lee.hayhurst@travelweekly.co.uk
On Friday the starting gun will be fired on the lates market as operators start to sell off unsold stock with two weeks to go before the school holidays.
However, the trade is braced for a challenging market. Observers predict an unprecedented lates period as bargain hunters are left disappointed while cheap deals for unpopular destinations go unsold. Problems in Egypt, Tunisia and
the eastern Med mean millions of Brits who holidayed in north Africa, Turkey and Greece last year have been competing for capacity in the west if they want a holiday. According to sources this has seen a “scramble for beds” among the major operators, Thomson, Thomas Cook and Jet2holidays. Last Friday, Majorca’s Palma airport handled a record 176,000 passengers, 20,000 more than its previous busiest day in 2015, while hotels on the island reported
average occupancy rates of 95%. Meanwhile, carriers such as
easyJet are slashing peak season prices to Palma because the hotel beds that are left are so expensive. Alan Bowen, legal adviser to
the Association of Atol Companies, said: “It’s going to be very difficult for anyone depending on the lates. People aren’t going to pay £2,000 for a holiday to Majorca; they are looking for something for £500.” Advantage commercial director John Sullivan said: “There isn’t much stock left and what is left comes at a premium, but you have people wanting Turkey prices in Spain.” But industry consultant Andy
Cooper countered: “It’s going to be an unusual year, but there is still quite a bit of capacity left.” Teletext Holidays chairman Steve Endacott said the lates would be “difficult” due to demand focusing on the west and the swing against the pound since the EU referendum. “Unless you are an operator who has hedged, you have seen prices go up. But the UK weather’s been appalling so there’s demand.”
Majorca hotels are 95% full
Lucy Huxley
lucy.huxley@
travelweekly.co.uk
The owner of a luxury operator has hit out at the likes of Richard Branson and Michael O’Leary for “talking travel into a hole” in the wake of the Brexit vote.
Nick Munday, managing director of Classic Collection Holidays, slammed the Virgin and Ryanair duo for their “gloomy” views of the sector following the referendum result. Instead, Munday believes the industry should remain positive and look to “find the silver lining”. “People like Richard Branson
saying we’re doomed, Michael O’Leary saying he’s going to move all his planes to Europe or Tui’s Fritz Joussen announcing a profit warning is unhelpful,” said Munday. “People are running high on emotions, I understand that. But we’ve got to try and work out a way forward following the vote.” EasyJet boss Carolyn McCall
was this week reported to be considering moving the airline’s legal base from the UK. Munday suggested some firms
may have used the Brexit vote to cover bad news or performance.
3 STORIES HOT
Munday: ‘Find the silver lining’
‘Don’t talk travel into a Brexit hole’
“People like Branson saying we’re doomed is unhelpful; what we need is a cool head”
“People have announced
profit warnings, redundancy programmes, recruitment freezes – it’s given some companies an opportunity to get out kitchen- sink news on the back of Brexit – but unfortunately, that’s bad news for travel and the economy. “What we need is a cool head, calmness and mild optimism.” Munday pointed out the industry had survived tougher times than the current uncertainty. “It will be tough, but we’ve
survived worse, so will be OK in the end,” he added. “It’s not to say I’m not worried,
but moping and talking the game down will not get us out of this.” Munday’s view that he had seen no dent in sales since Britain voted to leave the EU was echoed by Riviera Travel boss Michael Wright and Miles Morgan Travel owner Miles Morgan. Prestige Holidays also claimed UK bookings had seen
a spike following the vote. › Comment, page 30
7 July 2016
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