I see package holidays are in the news? Has the last company selling them gone out of business then?
Actually no, it is quite the opposite. A decade ago it might have seemed like it was game over for travel agents after more than 150 years in the sun. Big players like JWT and Thomas Cook shut up shop as independent bookings soared and Airbnb and the like appeared to present a mortal threat. But many travel agents hung on in there, and Ireland’s tour operators and travel agents now have an annual turnover of close to €1.5 billion. That is less than the independent travel sector, but it is still pretty robust.
So why are we talking about them?
Because Europe’s largest travel operator, Tui, just reported a hefty jump in its first-quarter profit driven by strong performance in its packaged holiday business. Low-cost carrier EasyJet has also seen its package holiday business grow significantly in recent months.
So is it the days of DIY holidays and online bookings that are numbered?
No. Low-cost airlines and the internet continue to make DIY holidays in even the most exotic of locations easier to organise than at any point in history. But a lot of people are returning to the warm embrace of the package holidays, thanks to higher hotel and flight prices.
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But surely DIY is cheaper because you are cutting out the middle man?
The evidence suggests you are wrong. Repeated studies have shown that booking a holiday to the same destination and staying in the same hotel can be significantly cheaper as part of a package. The package deals also offer much greater protection if a trip is affected by some class of disruption or if the company goes out of business.
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What do you mean?
Operators who sell package holidays in the Republic are required by law to be bonded, which protects consumer’s money if that the tour operator goes out of business before or even during a holiday. Consumers also have protection if the Department of Foreign Affairs advises against non-essential travel to a country, and booking with a travel agent also gives you the knowledge you are covered in the event of missed connections, airline failures, or repatriation if there is a problem travelling.
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But how can tour operators be cheaper? Surely going direct to the hotel and airline costs less?
The airfares do tend to be much the same – many who sell package just book regular flights and don’t get special rates. But it is a different story when it comes to accommodation. Package holiday companies buy in bulk and are linked into “bed banks”, where suppliers can book thousands of rooms. The hotels simply can’t rely on direct bookings.
People flocking back to warm embrace of package holidays thanks to higher hotel and flight prices
