Travel recruitment

Wed, 10 Dec 2008

Travel recruiters claim TUI Travel’s cut to winter capacity is a sign of troubling times ahead

Leisure travel firm TUI Travel’s cut to its winter 2008/09 capacity is a sign of troubling times for the travel industry, recruiters have claimed.

Gail Kenny, managing director of Gail Kenny Executive Search, told Recruiter that cuts in capacity could lead to a trimming back of some of the capacity-related job functions, such as airline ground and cabin staff and holiday reps in resorts.

TUI Travel has now cut its UK winter 2008/09 capacity by a total of 28% in order to maintain stronger average selling prices, a trading update has revealed. “TUI is cutting its cloth accordingly and such moves are likely to be prudent as far more damage could be done next year if the company is left with thousands of unsold and perishable holidays. The move should improve the company’s financial performance and market leaders will tighten capacity across the whole market.”

Julia Feuell, managing director at New Frontiers, added: “Once our business altitude has levelled off, the new trading conditions will be revealed and we will all have adjusted. TUI is doing what all other travel companies are doing, flying through the turbulence of business cycles.”

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