New market for coach tours
Page 17
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THE virtual disappearance of the cheap package tour by air to the Continent had opened up a new market for mini-holidays, the North Western Traffic Commissioners were told at a two-day hearing last week.
The Commissioners granted applications by four groups of operators in the Manchester area covering six Continental and 23 British two, three or four-day tours.
The applications, by the Bullock Group of Cheadle; the Tatlock Group; the Finglands Group; and Eavesway Motor Coaches Ltd, were all opposed by the Greater Manchester PTE, which runs holiday tours following the purchase of the goodwill of Lancashire United Transport Ltd and the grant of Licences last September.
Mr J. A. Backhouse, said until now the applicants had found it impossible to compete with the cheap air holidays offered by package tour operators, through Ringway and other airports. The proposed operations were not really in the extended tour field and it was significant there were no objections from operators such as Wallace Arnold. Tours and National Travel.
Mr F. D. Walker, for the PTE, said it opposed only those tours to the Continent.
After it had been indicated that no linking between the different groups of operators was proposed, Mr John Tatlock, Tatlock Group managing director, questioned Selnec costings and produced figures for tours to Holland via North Sea Ferries. He suggested that these showed the PTE tours must be running at a loss. It was argued that the road fare of £3 between Manchester and Hull was unrealistic and that it was likely that there would be no profit in the advertised operations for 1976.
Mr P. Healey, tours officer for Selnec Travel, said the Continental tours of up to six days were restricted to two pickingup points, and an application was in the pipeline for two more.
The first LUT operations began in 1973; there was a slight recession this year in demand for the fiveand six-day tours, but a growing demand for shorter tours and these were being increased from eight to 27 in 1976.
Cross-examined, Mr Healey said Selnec had a confidential tariff with North Sea Ferries which he was not prepared to discuss, but it was more favdurable than that quoted to other operators.
In reply to the chairman, Mr R. D. Hutchings, he denied that any of the Continental tour operations had run at a loss.
Mr Walker submitted that Selnec was at present the sole operator of this type of Continental tour. If the applica tions were granted they must make substantial inroads into the traffic.
Mr Hutchings said the Commissioners took the view that mini-holidays were akin to day excursions rather than extended tours. This was a new market forced upon the public by the economic situation and the loss of short air holidays.
There was clear evidence of demand, he said, and it was felt that its division among the existing operators was in the public interest; and they would be better served by being picked up locally than by having to make their way to a central point.