SUMMER HOLIDAY SALES START TO SLOW IN THE UK AMIDST FEARS OF WAR

By Humphrey Carter UK summer holiday sales have started to lose their momentum as fears of war in Iraq are starting to have effect on the industry. All of the UK's leading tour operators marked the New Year by slashing prices and offering huge benefits to early summer package holiday bookers, but the four leading operators are stating to reduce the number of bargains and gradually restore package prices to brochure rates as demand drops and the market gets increasingly tough. Over the next few weeks, tour operators are expected to decide on whether or not to reduce charter flight capacity for the summer, having postponed the end of January deadline, although MyTravel has already cut capacity by 15 per cent. Tour operators are expected to reduce capacity, bearing in mind that last summer saw them cut capacity by an average of 18 per cent, while increasing holiday prices. While holiday sales were brisk in January and the Association of British Travel Agents (Abta) still maintains that high street business is up on last year, alarm bells started to ring at the FITUR travel fair in Madrid ten days ago. In general, all the Mediterranean destinations are primarily concerned about the consequences of war in Iraq and according to British, Spanish and German tour operators, more and more consumers are delaying making any summer holiday decisions.