NEWS
Dame Irene Hays
Steve Heapy
Garry Wilson
Operators comfortable with peak capacity despite pricing concerns
Travel Weekly reporters
The bosses of two of the UK’s largest operators insist they are comfortable with the volume of holidays still to sell for the peak summer season despite concerns over discounts entering the market.
Jet2.com and Jet2holidays chief
executive Steve Heapy and his easyJet holidays counterpart Garry Wilson said they were confident about capacity increases for 2025, with Heapy urging the trade to “hold its nerve” on pricing. However, Hays Travel
Independence Group members were urged to avoid “a reliance on short-haul operators” and develop higher-margin cruise and long-haul business as bosses noted discounts and a reduction in average selling price for this summer. Heapy and Wilson were speaking
as Jet2 and easyJet launched bases at Luton and Southend respectively and followed recent comments
travelweekly.co.uk
from Tui UK & Ireland managing director Neil Swanson that he was “pleased” with a decision not to increase capacity this year. Heapy said Jet2’s capacity for
summer had increased by 9%, but 5% of the increase was accounted for by new bases in Liverpool and Bournemouth, as well as Luton. He added: “I am pretty
STORY TOP
comfortable with where we are. It has been a consistent sales period so far. “People have to hold
their nerve and not start a downward spiral of pricing, which isn’t good for the
industry. It looks like it might be a
late market, so don’t jump too early.” Wilson said easyJet holidays
was on track to grow its customer numbers by at least 25% this year as it aims to become the UK’s largest travel company. He said: “If you look at our Q1
results, we grew by about 35%. We’ve said we’ll grow by at least 25% for the overall year and there’s
no reason to think we won’t with the way sales are shaping up.” Wilson said he was “hugely
optimistic for this summer and going forward,” and added: “I’m focused on sustainable and commercial growth. The margin is what’s important to me.” Hays Travel IG members
attending the consortium’s UK conference in Cheshire were told of “fundamental changes” in the way holidaymakers were booking in the current market. Agency owner Dame Irene
Hays said trading was “not by any means as bad” as might be expected considering economic forecasts and recent world events. But she reported a “significant”
increase in families booking holidays outside non-peak periods – including during term time – and said cruise and long-haul sales were proving popular due to “price erosion” and attractive deals compared with traditionally cheaper short-haul holidays.
Hays Travel has previously
outlined plans to sell more long-haul and cruise holidays so that each accounts for a third of its sales alongside short-haul. Chief operating officer Jonathon
Woodall-Johnston told IG members that focus would be particularly important this year to avoid a reliance on “discount messages”. “We have had additional
promo codes and discounts and additional free child places to stimulate the summer market, which would indicate there is an issue with overcapacity and not enough holidays sold,” he said, adding: “We don’t want to become reliant on short-haul operators.” Hays said: “It’s about how
[any overcapacity] is handled by suppliers. We have very good relationships with suppliers. “We could help them, because
of our volume distribution, to move that stock to make sure it is done in a way that doesn’t damage our agents or them.”
3 APRIL 2025 5
PICTURES: Shutterstock/2020 New Africa; Chris Gloag
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