Price/capacity imbalance hits ski industry

Price/capacity imbalance hits ski industry

Ski resorts are struggling to fill due to higher prices and the late booking trend, according to one tour operator. “Because the last minute trend, companies felt they had too much capacity and drove their prices down,” Andy Sturt from VIP SKI told Travel Daily. “Now they [tour operators] have less capacity but have had to keep prices higher, so they can’t fill accommodation. We have dropped our capacity by 20% but are 65% sold.”  He added that the industry looked set to hold its prices, although value for money had become a priority for customers. “Travel agents are doing fine because more consumers are shopping around,” explained Sturt. “There is still a feeling of austerity so customers want to feel that they are getting good value.” As a result, VIP SKI has seen strong bookings for the Easter break due to early booking offers and high sales for January. The operator has also recovered from the recession to 2007/08’s level of bookings.

Gary Marshall
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Gary Marshall
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