19:02 ET<\/span>
\n<\/span><\/p>\nFirst Choice holidays will make all its holidays “all inclusive” from next year, claiming it will save money.<\/p>\n
It says from next summer it will become the UK’s first mainstream holiday company specialising in the field. <\/p>\n
The package will include flights, in-resort transfers, hotel accommodation, three meals a day and unlimited local drinks as standard.<\/p>\n
The move is the polar opposite from the past decade’s trend of building your own holiday.<\/p>\n
The introduction of the low-cost airline and the internet exposed travel companies’ profit margins, although two types of package holidays fought back – the cruise and the all-inclusive holiday – such as that offered by the Sandals chain of resorts.<\/p>\n
Typically, these were advertised as upmarket and somewhat exclusive and, squeezed between the two, mainstream travel companies lost their market share.<\/p>\n
Budget conscious<\/span><\/p>\nFigures from the Office for National Statistics show the package holiday market peaked in 2002, when 20.6m were taken.<\/p>\n
Last year that had slipped to 17.9m.<\/p>\n
First Choice is marketing all-inclusive deals as suitable for budget conscious UK holidaymakers, claiming a “price test” showed a typical family could save more than \u00a3500 a week by taking an all-in option, taking into account meals, snacks, travel and entertainment obtained independently.<\/p>\n
It says its research shows that demand for all-inclusive holidays has grown by 32% in five years.<\/p>\n
Already, 65% of its holidays are of this type.<\/p>\n
Johan Lundgren, managing director of TUI UK & Ireland, the parent company of First Choice, said the move was a first.<\/p>\n
“There is no mainstream holiday company currently offering a completely all-inclusive portfolio.” <\/p>\n
‘Devil’s work’<\/span><\/p>\nSimon Calder, the travel editor for the Independent newspaper, queried some of the figures used in the price comparison offered – one of which is the cost of an ice cream in a Tenerife supermarket, which First Choice’s survey said cost \u00a32.20.<\/p>\n
He said all-inclusives cut off a number of the pleasurable things to be experienced on holiday – and did nothing for local trade.<\/p>\n
“From every point of view, except perhaps holiday company shareholders, all-inclusives are the devil’s work. From the holidaymaker’s perspective, they dampen the appetite to explore – because as soon as you step beyond the walls the meter starts running and you’re incurring extra costs. <\/p>\n
“Therefore you’re not getting the range of experiences you would find if you simply used the hotel for sleeping in, and explored the options in the area.”<\/p>\n
But he said the move was a good one from a branding point of view.<\/p>\n
“When Thomson merged with First Choice a few years ago, it meant the same company had two very strong brands. Since then there’s been a lot of confusion. This year I booked a Thomson holiday but flew on a First Choice plane. Moving First Choice into a single-concept brand is a neat solution to that problem.”<\/p>\n<\/p><\/div>\n<\/p>\n
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