Continued from page 48
ancillaries via the TMC channel. “[But] significant
functionality is still not in place . . . [and] airlines are moving at different speeds with NDC deployment . . . [resulting] in NDC schema instability.” The BTA notes 25 airlines
are certified on NDC standard 17.2, 10 on 18.1, 17 on 18.2, four on 19.1 and five on 19.2, and Iata has announced a new standard (21.3) when “moving between versions requires significant re-implementation”. “Industry rollout is claimed
to be at 28% but the average within the TMC sector is 10%.” At the same time: “Many
airlines have decided to levy surcharges on content purchased by agents via GDS systems.” The report concludes “there
are no signs” of NDC’s promise “becoming a reality” and “no clear materialisation of any benefits”. It notes the average BTA
member fare for UK-based international airlines in 2019 was £1,048 and states: “TMCs provide airlines with a high-yield fare . . . They provide services beyond what an airline can give and proactively work with airlines to assist the customer. TMCs are not OTAs, should be recognised as strategic partners and compensated accordingly. “It’s time for airlines to work
with TMCs to compensate them for their NDC investment and offer reward rather than penalty.” BTA chief executive Clive
Wratten said: “Modernising airline retail is essential for the business travel community, but this fractured and disjointed approach is failing to deliver on expectations.”
On the Beach reduces losses to £37m from £46m
On the Beach reported a loss of almost £37 million for the 12 months to September 30, an improvement on the £46 million it lost the previous year. In May, the online agency
suspended taking bookings for holidays to depart before September 1 and will feel
vindicated after reducing its losses due to cancellation refunds. The group recorded £10 million
in exceptional costs for the 12 months, “primarily the result of Covid-19 related cancellations …and associated administrative expenses”, down from £42 million in 2020. On the Beach raised almost
£25 million in additional liquidity through a shares issue in July and extended repayment of a £25 million government-backed loan into 2023. It reported having £56 million in cash available in
Chief executive Simon Cooper
addition to £39 million of customer money in the company’s trust account and noted: “The group continues to refund customers in advance of receiving refunds from airlines for cancelled flights and does not issue refund credit notes.”
Tui loses €2.5bn but tips 2022 to be ‘close to’ 2019
Ian Taylor
Tui reported “very few cancellations” following restrictions due to the Omicron variant and forecast summer 2022 bookings will be “close to” 2019 levels. Chief executive Fritz Joussen
acknowledged “Omicron has an impact” and said “it is better in other countries than the UK”, but he insisted: “The impact is not as high as I expected.” Reporting Tui’s results for the
12 months to September last week, Joussen said: “When everyone who returns [from holiday] has to take a PCR test and needs a screening test before they return, it has an impact. Fortunately, it is the lowest booking season and lowest travel season.” He added: “Additional testing
causes additional cost, but the most annoying thing is the unpredictability.” However, Joussen claimed
the current winter season would remain strong, saying: “We see very few cancellations. People are
46 16 DECEMBER 2021 Fritz Joussen
largely amending, moving to later in the winter or to Easter. The total amendments are very small.” He reported winter bookings “at
62% of pre-crisis levels” and bookings for October to December “at 69% of the pre-crisis level and 90% sold” and insisted: “Even Omicron cannot influence this number a lot.” Joussen dismissed suggestions the
recovery could stall, arguing: “Our Central and Western regions are reasonably profitable this year and our hotels and resorts are at pre-crisis levels today. Our cruises are booked at the pre-crisis level at higher prices.
The Northern Region [which includes the UK] is 35% booked for next summer, 50% above normal, at higher prices. “I can’t imagine 2022 will be less
than 2021. Why shouldn’t next year be better? Prices are up, margins are strong. Last year we had much less vaccination and much more uncertainty. There is no reason to think next year will perform lower than this year. I cannot see the negative picture.” Tui reported a loss of almost
€2.5 billion for the 12 months to September but “a successful summer” since the relaunch of operations and forecast the summer 2022 peak season will “return to booking levels similar to 2019”. It reported average selling prices
for this winter up 15% on 2018-19 and forecast capacity would finish at 60%-80% of the pre-crisis level. Prices for summer 2022 were up 23% on 2019 to early December, “predominantly due to the mix” of holidays.
travelweekly.co.uk
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