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
The founder of Easyjet, Sir Stelios Haji-Ioannou is to receive £72m from his family's stake in the airline after the airline bowed to pressure to pay a special divident.
It marks the end of a three year battle between Haji-Ioannou and the easyJet board but the airlines chief executive Carolyn McCall said the payout was not due to pressure from him alone.
"Market sentiment has definitely shifted. There is no question that since things got harder in the eurozone shareholders have definitely shifted their emphasis to capital returns," McCall said.
The payout has been authorised after the airline upgraded its profit expectations for the current financial year from £200-230m to between £240m -£250m. EasyJet attributed the improved results to a strong business market, city break flights and people still travelling for holidays which are deemed to be sacrosanct despite these tough times.
Are you going to treat yourself to anything nice Sir Stelios?
Posted by Tom Warsop at 13:00