First Choice holidays witnessed its winter pre-tax losses rise to £82.5 million from a £76.5 million in 2006. First Choice, currently in the process of finalising a merger with TUI to create Europe’s largest operator stated that despite the winter losses, summer revenues from all the different sectors were in fact on the up. Particularly promising was the long-haul market which witnessed a 26% rise in revenue and a 21% booking increase. Summer holidays at First Choice are up 3%, whilst activity holidays and specialist holidays are up 32% and 5% respectively.
A statement from First Choice holidays described the UK market as “particularity challenging”. The winter losses at First Choice have been put down to a result of an increased spend on acquisitions as the group splashed out almost £145 million on seven different companies during the six month period to the end of April.
First Choice also revealed that it has gained greater control over distribution, with 62% of winter holidays sold through them directly, up from 57% the year before. The same can be said for summer 2007 holidays with 71% sold directly, up from up from 66% last year.
