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One in three Brits did not holiday in 2011

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WTM: One in three Brits did not holiday in 2011, study finds

Nov 07, 2011 14:46PM GMT

WTM: One in three Brits did not holiday in 2011, study finds

Holidays are now seen as a discretionary spend rather than a necessity, according to the World Travel Market 2011 Industry Report (pdf).

The report, which  polled more than 1,000 UK holidaymakers, showed that over a third (38%) did not have a holiday this year. A holiday was counted as seven nights in the UK or overseas.

In order to find 1,000 holidaymakers who had been on holiday, the report actually had to survey 1,611 consumers. Of those that did holiday in 2011, almost six out of ten (59%) only took one.

The low figure was blamed on the impact of the recession on household budgets, and the increase in Air Passenger Duty.

More than a quarter, 26%, said the increase in costs of travelling due to taxes was a major issue. Just over a third, 31%, said they will travel less often. For 5%, 2011 was the first year they did not travel abroad because of the increase in the cost of holidaying due to taxes.

WTM chairman Fiona Jeffery admitted the findings that consumers no longer viewed holidays as “sacrosanct” was a concern.

“For the first time the report indicates people are beginning to cut back on having a holiday and that is a concerning sign,” she said.

But the report highlighted opportunities for the industry, such as the London 2012 Olympics and potential of the emerging BRIC nations – Brazil, Russia, India, China and South Africa.

The report, which also polled the views of more than 1,000 senior industry executives and WTM exhibitors, showed more than eight in ten executives believed major sporting events would have a positive impact to London and the UK.

However, UK hoilaymakers remained uninterested in the games with only 8% saying they would incorporate the London Olympics into their holiday.

Monarch denies previous refinancing ‘failed’

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Monarch denies previous refinancing ‘failed’

By Ian Taylor |  Nov 03, 2011 12:30PM GMT

The Monarch Group has denied a £75-million refinancing of its loss-making airline was necessary because a previous financial restructure had failed.

Monarch executive chairman Iain Rawlinson said: “The 2009 refinancing was a success. It allowed the business to return to profitability last year.”

The group announced the £75 million cash injection from its controlling shareholders, the Swiss-based Mantegazza family, on Thursday. The move followed a £45-million refinancing two years ago.

Rawlinson reported a £45 million loss for the year to October 31. But he told Travel Weekly: “What we are looking at here is a response to a long-term re-shaping of the market.

“We made a decision in May this year, when oil prices had been $110 a barrel for several months, that high oil prices were here to stay and we had to reshape the business. That was the priority.

“We spent May to July developing a plan for a changed, higher-price environment and that is what the shareholders have accepted. We are taking the initiative to ensure the business can operate successfully in a changed environment.”

Rawlinson said he did not expect market conditions to improve next year and consumers would have to adjust to paying higher fares.

He said: “It is inevitable the cost of flying is going to rise. Fuel costs have increased on average 25%-30% this year – although I’m not suggesting all that will be passed through to consumers. It is incumbent on all of us in the industry to run our businesses more efficiently.”

Rawlinson conceded: “We made a substantial loss [on the current year]. We are very cautious about 2012. But prospects for recovery in 2013 are better. We expect the market in 2013-14 should show some signs of recovery, based on a hopeful return of consumer confidence.”

He attributed the losses for 2010-11 solely to Monarch Airlines, reporting tour operator Cosmos and the group’s aviation engineering business, Monarch Aircraft Engineering, had been profitable.

Tui Travel set for ‘phenomenal’ technological change

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Tui Travel set for ‘phenomenal’ technological change

07 October 2011

Tui Travel will push through “phenomenal” technological change as it bids to become an online-driven business, chief executive Peter Long told delegates at Abta’s Travel Convention.

Speaking in Palma while interviewing Iberostar boss Miguel Fluxa, Long described the online arena as fascinating, and warned convention attendees to ignore online “at your peril”.

He said: “We have a clear view of what we need to do at Tui and the journey involved. The pace of technological change we are going to see is phenomenal. We want to be an online driven business and have a long way to go.”

Long also talked about the importance of gaining new customers outside its traditional markets:

“Geographical expansion is important to us given the volume of new consumers in emerging markets.”

Fluxa said it was as important as ever for tour operators and hoteliers to work closely together and to avoid online business damaging those relationships.

He revealed that of the growing online business Iberostar gets just 20% is from consumers. The rest is B2B, for example from agents dynamic packaging with low cost flights.

Fluxa also pointed out that passengers on low cost flights are not necessarily low quality clients in terms of spend – many are trying to channel as much money as possible into the quality of accommodation.

And said quality of service would improve as those who work in hotels have realised, more than ever due to difficult economic times, that the guests are the key to their livelihoods.