No rush to discount in Irish market

PACKAGE HOLIDAYS: THE NUMBER of Irish people taking package holidays has declined sharply this year but diminishing demand has…

PACKAGE HOLIDAYS:THE NUMBER of Irish people taking package holidays has declined sharply this year but diminishing demand has not resulted in a higher than normal level of discounted last-minute deals this year.

Irish tour operators are offering around 350,000 package holidays this year compared to over a million in 2006. This reduced capacity means that last-minute package deals, reported in the UK in recent weeks, are unlikely to materialise for Irish tourists, said Simon Nugent, chief executive of the Irish Travel Agents Association.

Some UK tour operators significantly overestimated demand this summer and a glut of package holidays has meant a rash of last-minute deals selling for around 50 per cent less than the full brochure price.

But don’t expect the same level of discounting in the Irish market. “I think Irish tour operators called it right this year. Unlike their UK counterparts, they correctly predicted there would be a fall-off in demand and that, coupled with the collapse of Budget Travel, has led to many tour operators cutting their cloth accordingly,” said Nugent.

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He predicted that many who waited for last-minute deals to materialise would be disappointed. “The type of late offer deals which existed last year and in 2008 have simply disappeared.”

Nugent said 2010 was shaping up to be another bad year for travel agents with the number of packages booked likely to be down around 10 per cent on 2009, which was down 9 per cent on 2008. “We are certainly shaping up to be down 20 per cent on the peak.”

Some of the decline he attributed to the increased level of DIY bookings, with people seeking out cheaper flights on low-cost carriers and then booking hotels and apartments directly with the owners.

Conor Pope

Conor Pope

Conor Pope is Consumer Affairs Correspondent, Pricewatch Editor and cohost of the In the News podcast