12 July 07
Dollar fails to spark UK tourism
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Package operators to Florida admit that
the $2 pound has done little to revive business, with Thomson saying it
will freeze capacity for next year.
The destination is feeling the effects
of fuel surcharges and a downturn in family visitors, forcing Thomson to
cut Florida capacity by more than a third this summer. A spokesman said
it expected no revival for next summer.
“With Florida, people are more
comfortable booking direct and many have homes there, so a lot of
capacity is seat-only,” he said.
“There is no plan to pull out. There
is still a little bit of life in the villas market, but we have put
aircraft elsewhere where we can offer the full package.”
Virgin Atlantic is cancelling 26
flights from Gatwick and Manchester to Orlando in September. It claimed
the aircraft were needed elsewhere.
Visit Florida UK and Ireland director
Colin Brodie predicted Florida would attract 1.5 million UK visitors
this year, fractionally more than last year.
He admitted: “It is not going through
the roof as you would expect with the exchange rate.”
Brodie blamed high fuel surcharges,
which can add almost £350 to the cost of a family holiday – plus
higher UK interest rates and competition from other destinations.
“I don’t think security has had an
effect,” he said.
Brodie said poor UK weather was driving
late sales but admitted: “It is all price-driven.”
Visit Florida accepts the destination
is now a mature market, with 200,000 Britons owning homes there.
Brodie added: “Expedia, etc are doing
very well – a lot is being booked direct.”
Geoff Medhurst, XL Leisure Group’s
tour operations managing director, also reported a downturn in
traditional packages.
He blamed “unco-operative” US
ground-handlers following a boom in domestic visitors. However, he also
said the US was no longer “aspirational”.
Orlando will launch a $3 million UK
marketing campaign in the autumn, but Brodie said future campaigns would
aim to attract more short-break business.
“Florida is still seen as a family
destination: you don’t think of going to Miami for four days.
Operators have to look again at what they are offering,” he said.
“Florida is seen as Orlando and not
something else – we have to change that perception,” he said.
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