Consumers to book their own holiday as prices increase
By Darren Cronian on Thursday, December 4th, 2008

I have never worked within travel so forgive me but, who will be affected if tour operators continue to cut the number of holidays next year. The reduction is supposedly due to the lack of demand but the fact that the interest rate has reduced will this not increase demand for package holidays.

Consumers to book their own holiday as prices increase

Lack of package holidays leads to consumers going independent

This year I realised that the late holiday deal is pretty much dead and buried, as I struggled to find a holiday within a few weeks of my annual leave. Yes, I know that’s because tour operators had started to cut the number of holidays, but, will this lead to more consumers booking their own holidays.

Consumers will instinctively find cheaper alternatives

The price is often mentioned as being the major factor behind the making a holiday booking, so if prices are to rise by nearly 10 percent as TUI have being quoted in a few of the national newspapers this week, then consumers will look for cheaper alternatives.

Increase in consumer issues

We will then see a further increase in the issues surrounding consumers booking their own holiday, such as consumers stranded abroad, because the airline has gone bust, or their hotel has doubled booked. Let’s be honest, none of this is good press for the travel industry.

Pressure on travel agencies

There’s the extra pressure on travel agencies because surely, less holidays, equals less revenue generated. This then has financial implications during a difficult time, staff losses, unmotivated staff, and this has implications for the consumer.

I welcome your responses to the points raised.


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4 responses to “Consumers to book their own holiday as prices increase”

MudslideMama | 4 December, 2008 at 6:10 pm

You’re right again, as usual. Change and progress aren’t always easy, but it’s always the way (much like doctors don’t put leeches on everyone for any ailment anymore). Travel consumers should be educated best they can for travel deals and hotel packages, and this info is on airline and hotel websites more often than not. Tour operators will assuredly have to adjust to the amazing speed of technological capabilities regarding travel planning.

Very nice summary of the direction travel planning is taking.

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Andy Hayes | 4 December, 2008 at 8:43 pm

I think no matter what they do, the travel operators will be hurting and in the end it will only be the consumer who loses.

Worse case is the weak operators do not survive, leaving only a few strong players left in the field who will wield their pricing powers as much as they can.

Best case is this is a cyclical phase and we’ll be over it soon.

One can only hope for the best :)

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Nick | 5 December, 2008 at 1:57 pm

Tour operators own shops will be hurting but there are less and less of these. As for independent agencies the package is a small part of the business now, most independent agents deal with putting trips together, cruise etc. anyway.

As to customers doing it themselves, where do the seats on aircraft come from? With both a reduction in charter and secluded flights there is simply going to be less holidays.

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Vera Marie Badertscher | 6 December, 2008 at 6:01 pm

Just as restaurants that have linoleum floors and rickety chairs draw customers to their obscure locations because they have excellent food and good service, tour operators who have an interesting product and a good price will continue to draw people who are a bit timid about going on their own.

It seems to me you kind of mix apples and oranges when you talk about tour operators and travel agencies in the same post. Agencies have been slipping down for a long time, because the airlines stopped paying them commissions and because the public discovered the Internet. Tour operators, however, have a much more specialized service.

Will the ladies from Brighton stop taking the cheap trip to Disney World? Will the couple from Arizona not go to Ireland on a $600 package deal? Granted, the cost of fuel and subsequent cutting of airline schedules has made it more difficult for the tour operators to find cheap flights, but perhaps with the reduction in oil prices, pressure on the airlines will ease and benefits pass to consumers. One can only hope.

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