Holiday price war as battle for summer 2010 heats up

Experts are predicting a package holiday price war as companies seek to capitalise on a recovering market in 2010.

The Co-operative Travel, one of the UK’s largest travel retailers, reports that bookings across the top 20 destinations for next summer have seen a 26% increase in the last three months as the market begins to recover.

Leading the way are Turkish resorts, with Dalaman seeing an increase of 82% and taking over from Majorca as the number one destination for UK holidaymakers in 2010.

Value-conscious bookers are thought to be behind this rise in Turkey’s fortunes. The average price of a package holiday to Dalaman is £516, £79 per person lower than the average break to Majorca (£595), giving it the edge as holidaymakers seek to make their budgets stretch further.

Travel companies are also seeking to attract bargain hungry shoppers with attractive deals as the market enters its key booking period.

Trevor Davis, Director of Retail Distribution at The Co-operative Travel, said: “As the holiday sector recovers, the battle for bookers will intensify with companies seeking to increase their market share after a challenging 12 months.

“We’re offering as much as 20% off thousands of holidays or free child places, along with very low deposits of £50 per person to allow people to book early and take advantage of the deals available.”

However, as the market recovers, Trevor predicts that the deals and choices for holidaymakers will quickly disappear.

“If the current increase in bookings continues and confidence returns to the market, we will see fewer bargain deals being offered. What’s more, many operators are reducing capacity and this, combined with the recent high profile collapses of major travel businesses, will mean that there are fewer holidays for sale when it comes to people wanting late deals.

“Savvy bookers should take advantage of the deals available now and choose their destination with care.”