British holidaymakers switch back to package holidays

UK Holidaymakers are reverting to package holidays to provide more security when travelling abroad, according to research conducted for Britain’s largest travel company.

TUI, the owner of Thomson and First Choice, is saying that over 24 million Brits went on a package tour during the 12-month period ending 30 June. For the same period one year earlier, 22 million travellers chose holiday packages. TUI expects that the numbers will grow over the next year, particularly in light of the collapse last week of the XL Leisure Group, which left thousands of UK tourists stranded at resorts abroad.

For consumers who buy package tours, there is financial protection in case of a company’s failure, but for those who book their flights directly, there often is not.  Some of XL’s clients were covered and able to fly home on alternate flights at no additional cost, but others were out-of-pocket.

Research that was conducted for TUI by Mintel determined that more than half of the 46 million Brits travelling abroad in the past year (53 per cent) purchased their trip as a package.

If Mintel’s figures are correct, this is a major change in travel habits. Only three years ago, industry experts predicted that the traditional package holiday was dying out, thanks to the availability of no-frills fares and Internet bookings.

The International Passenger Survey (IPS) conducted by the government shows that annual sales of package holidays increased from 14.5 million in 1996 up to 19 million in 2006, but have not grown in number in the past two years.

www.tui-group.com