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The future of the ski industry is becoming less and less certain while we continue to move further into the recession. With a big question mark over how tour operators will fare next winter, Erna Low has conducted several studies on why our clients changed their holiday habits. Where did we lose bookers? Where did we gain? Will skiers ski next winter in the light of economic uncertainty? The results are released in the Erna Low Credit Crunch Report.
The International Passenger Survey predicts that 2009 is likely too see the biggest negative growth for a considerable time and only the second fall in overseas holidays in over a decade (after 2008). However, from the recent studies conducted, Erna Low is confident that skiers will still find a way to keep skiing for years to come.
Notable changes in habit include: choosing less expensive departure dates; opting for self catering packages rather than a catered chalet holiday; a preference to self drive; heading for less expensive resorts with good quality accommodation. Due to Erna Low’s extensive portfolio of accommodation in over 80 resorts worldwide, we are well equipped to offer clients great alternatives when economising on their ski holiday.
Looking at the results of season ‘08/09, Erna Low interestingly lost marginally more clients than were gained but the value of the holiday booked increased providing a more profitable yield. With 45% of lost bookers blaming the financial situation for not taking a ski holiday, nearly a quarter of new bookers opted for Erna Low purely for price and excellent value of product. Several responses to our survey stated a move away from the more expensive package operators to Erna Low as a means to keep skiing in the recession.
"The current economic climate did change our plans and we took a self catering rather than hotel option – surprisingly we did find that self drive was very convenient, especially with a family. It was also a last minute decision encouraged by great snow conditions which meant we felt that the deals available were not too expensive," says one happy client who almost decided against taking a ski holiday last season.
Looking at the winter season ahead, Joanna Yellowlees-Bound, CEO of Erna Low states: “Skiers have enjoyed excellent prices this season and have scooped up some considerable bargains but next year is going to be different, and skiers need to be aware of this. Last year the major tour operators and chalet companies did not see the crunch coming, and were badly burnt. They took large bed guarantees and they had to sell, come what may. The only way to do this was to slash their prices. Next season will be very different – greater caution amongst operators and far fewer bed guarantees will result in reduced capacity all round. But this isn’t death to the next ski season – it’s a simple case of good housekeeping to ensure survival.”
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
