Thursday, February 03, 2005

Major operators face a crisis as business drops off

Travelmole Paul Evans,* chief executive and founder of accommodation-only website lowcostbeds.com reckons that "The traditional package is being blown away. If I was a big operator I would be very, very worried,For the first time we don’t need them. If you look at ATOL figures two years ago they had 70% of capacity. It is now less than 50% and decreasing fast. People don’t need reps selling overpriced excursions in short haul beach resorts anymore. They don’t need a coach transfer that stops at 12 hotels...

Mr Evans, whose operation last night launched flight searches on 13 airlines, said the change is being driven by technology – something the major firms have been slow to develop.

"Change is happening faster than anyone ever imagined and technology is the enabler. It is allowing us to change all the rules," he went on. "But the large operators are like supertankers. It’s incredible how long it takes [to change]."

*former managing director of Going Places and First Choice Holidays

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