Thursday, 22 September 2011
TUI Travel plc who own Thomson and First Choice have today announced that selling prices for holidays next year will be 10% higher than this year. The travel giant have attributed this additional charge to rising costs of fuel and accommodation. A statement from TUI Travel said - 'We anticipate that in the UK, cost inflation will be just over 5% for summer 2012 and our prices are designed to recover these input costs in this competitive market.'
The move by TUI Travel to undertake this practice may be short sighted and could alienate its client base. The company is forecast to make profits of £352 million this year or £964,000 for everyday of the year and an additional 10% on top of the cost of a £1000 holiday could be too much for customers to afford.
Time will tell whether this move will be in the best interests for TUI Travel or whether such moves will be to the advantage of holiday companies who don't have the huge costs running costs of travel behemoth's and can deliver quality holidays at lower prices.
What do you think?
Posted by Tom Warsop at 16:21