PICTURES: ISTOCK
NEWS
Contents
21.11.2008
NEWS
Operators 12
Cruise 16
OPINION
Simon Calder 29
LETTERS 31
MAUREEN 32
WEEK IN PICS 36
HOW TO… 38
MYSTERY SHOPPER 40
DESTINATIONS
Latin America 43
Dynamic Packaging 50
TOP FROCKS
Travel Weekly
picked out the
best-dressed
agents and
attendees
at this year’s
southeast
Agent
Excellence
Awards at
The Troxy in
east London
last week.
See the top
frocks at www.
travelweekly.
co.uk/agent
awards.
Monarch boss says ‘outlook is grim’ at London conference
Leisure trade set
for a tough 2009
Ian Taylor
ian.taylor@bi.co.uk
The leisure trade must expect
tough times in 2009 with fewer
people travelling, two leading
industry fi gures have warned.
TUI Travel UK managing
director Dermot Blastland told
the Airport Operators Association
Conference in London:
“We assume there will be less
overseas travel with the weaker
pound, high fuel costs and
poor economy.”
Both he and Monarch Airlines
managing director Tim
Jeans warned of limited longterm
growth for UK airlines.
Jeans described summer
2008 as “very strong”, but said
fuel costs would rise next year
and be passed on in higher
fares despite the falling oil
price – as hedging, or advancepurchase
fuel deals, run out.
Monarch will pay almost
25% more for fuel next year, he
said, adding: “This will have a
dampening effect on travel.”
Jeans warned: “The outlook
is grim. There is real pressure
on yields.”
Blastland agreed: “Price
may be a major issue for the
next 24-36 months.”
Pressure on fares would
also come from reduced scope
for airlines to add ancillary
charges, said Jeans. “We have
Pre-Budget report will end APD confusion
Confusion over the future of
Air Passenger Duty should be
resolved by a government
pre-Budget report on Monday
that is expected to cut tax for
low-income households.
Major tour operators had
hoped to see a new Aviation
Duty replace APD from November
2009, in line with an
announcement a year ago. The
Treasury promised full details
Blastland: ‘We do not see a
lot of growth’
this autumn followed by
confi rmation of APD’s replacement
this November.
But airports and major
airlines have lobbied to retain
APD, despite resentment at the
government’s abrupt doubling
of the rate two years ago.
The Airport Operators Association
suggested this week
Aviation Duty could add £100
to a long-haul fare and lead
taken enormous fl ak on ancillary
fees, but they gave us the
opportunity to keep ahead of
rising fuel costs. We do not
have that option next year.”
He suggested the low-fare
boom had peaked, saying:
“There is a limit to how much
you can stimulate demand even
with give-away fl ights. I do not
see endless growth for airlines.”
Blastland agreed: “We do
not see a lot of growth.” But he
said: “The main holiday remains
important.”
A TUI Travel survey, which
asked clients how they plan to
reduce spending in the next
year, found just 23% put
their main holiday in the
top three and only 12% made
cutting it a priority. Spending
on eating out, drinking,
cars and home improvements
were more likely for the chop.
However, 36% of consumers
placed short breaks in the top
three for cuts.
to a 5% drop in passengers.
AOA chairman Ed Anderson
said: “We fear a 25% increase
in tax and are concerned
about the detail. An airline
fl ying an Airbus A380 would
pay more than [for] an old
Boeing 747.
“The idea of airports collecting
the tax is nonsense – Manchester
airport would handle
more tax than its total revenue.”
Travel agencies are slashing
marketing budgets in the face
of a tough economy
ABTA supports the principle
of an aviation duty to replace
APD. But Anderson said:
“It is a muddle.”
Transport secretary Geoff
Hoon sought to reassure the
AOA, saying: “I have long conversations
with the chancellor
and I am an optimist.”
It is believed the Treasury
will postpone the plans, but
may increase APD.
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