Nowhere has been more affected by no-frills airlines and the DIY holidays boom than the western Med. Dave Richardson talks to operators on both sides about the state of play

BALEARICS

The range of accommodation in Majorca, Menorca and Ibiza is wider than you might think, putting package operators who can offer first-hand advice in a strong position.Peak season availability is often tight, and bed banks risk being squeezed out on late bookings by hotels linked closely with package operators.

On the other hand, the islands are heavily served by no-frills carriers, and the many repeat visitors know their way around. Classic Collection is one of the operators focusing on upmarket accommodation, which can be packaged up using any airline. Managing director Nick Munday says: “You can see a queue of hundreds of people waiting for a taxi at Ibiza airport, but our customers are met by a chap holding their names up on a board who whisks them away in seconds. Classic Collection has been operating to Majorca for more than 20 years and we have six staff based there, who know the island like the back of their hands. We have a comprehensive range in Majorca, including country farmhouses.”  Munday adds: “We take 5,000 people to the Balearics each year, and special offers are now a major factor. But we don’t operate in the three-star market, where you can’t afford to charge £1 more than the competition.”

Youtravel.com counters that the familiarity with the Balearics makes them ideal for self-packaging. National sales manager Liz Garfield says: “For the Balearics in particular, the breadth of flying options available is second-to-none. There are virtually hourly departures in peak season – rather than daily departures offered by mainstream operators. “We are predicting a return to the self-catering holiday in the Balearics. For the past few years, all-inclusive resorts have ruled the DIY sector due to the strength of the euro. However, restaurants and bars have been forced to react and become more competitive, so self-catering holidays are regaining some appeal.”
She adds: “The Balearics are a cornerstone of the British holiday market. There’s little need for people to be ‘guided’ around on a package tour.”

MAINLAND SPAIN

EasyJet and Ryanair have become dominant names at the main resort gateways of Alicante (Costa Blanca) and Malaga
(Costa del Sol). They also serve smaller gateways including Murcia, Almeria and Reus, while most package operators (the main exception being Thomson) have given up on the Costa Brava.But Gerona, the Costa Brava gateway, is a base airport for Ryanair with flights from 14 UK airports. All the main resort areas are now big for DIY operators.

Operators selling both packages and DIY are in the best position. The Monarch group sells packages as Cosmos, with DIY being handled by Avro (flights) and Somewhere2Stay (accommodation). It no longer operates charters, but concentrates on the Monarch Airlines scheduled gateways of Alicante and Malaga served from four UK airports.

Somewhere2Stay offers a wider range of destinations throughout Spain. Neil Garner, Cosmos head of product and commercial, says: “All hotels in Spain that we sell as packages are also available as accommodation-only. We no longer have committed flight capacity to protect, and just operate on scheduled flights. He adds: “Currently we offer a bigger choice of accommodation-only. But with our modular pricing system due to be launched in January, we will also be selling many more accommodation-only properties as packages too. The Cosmos brochure represents only a sample of the packages available.”

THE ALGARVE

No-frills airlines are continuing to expand to the Portuguese gateway of Faro next summer. New routes include from Doncaster Sheffield Airport by easyJet, and from Edinburgh by Jet2. While many no-frills flights are used by property owners, they also support a strong DIY sector.

Thomas Cook-owned Hotels4u.com and Medhotels.com will have around 170 properties in the Algarve next summer, with prices starting from £8.24 per person per night self-catering. Top price is at the five-star Sao Rafael Atlantic in Albufeira, from £86.34 with breakfast. Teresa Walsh, sales and marketing director for the two brands, says: “No-frills carriers now offer more regional flying options to the Algarve. With such a wide variety of accommodation on offer, DIY can offer options for all clients. Extras such as transfers or car hire help provide a seamless journey for customers, and additional commission opportunities for agents.”

The ability to package up no-frills airlines is a key to success for operators such as Prestige Holidays, which has eight upmarket hotels in the Algarve. Prestige’s chairman and managing director John Dixon says: “Operators like Prestige offer clients added value such as free nights and spa treatments, room upgrades, free child stays and early booking deals. We have mature reps in resort who can advise clients on places to see and restaurants to eat in, as well as those to avoid. We can help agents up-sell room categories, boosting commission, and also help them sell ancillary services such as spa treatments and golf tee-off times.”

MALTA

This is another destination where no-frills airlines are expanding, challenging Air Malta. Ryanair and easyJet each have four UK routes, easyJet adding Liverpool for summer 2010. This expansion has boosted DIY operators such as Youtravel, which says it appeals to younger clients than those typically attracted to the islands.

The operator’s Liz Garfield says: “The swing towards a younger clientele is far more pronounced in the summer months. Music festivals, spas and revamped hotels are proving to be a great draw for young couples and families alike. The increase in the no-frills flights means Malta is a more flexible holiday option. It is now able to compete with the likes of Majorca in the short breaks market.”

Air Malta-owned Belleair claims the widest range of packages to the islands, with new offers including helicopter transfers from Malta airport to the island of Gozo. National sales manager Emma Yorke says: “We offer a comprehensive year-round programme selling flexible, value-for-money alternatives for every pocket and taste. We are an established brand and we pay agents commission on everything – including pre-bookable excursions.”