 Holidaymakers are favouring the more exotic getaway trips |
UK travel company First Choice has announced stronger sales of its holidays on the back of a decision to focus on longer-haul packages. First Choice is flying holidaymakers to fewer traditional holiday destinations in favour of higher-margin packages, including specialist trips.
This strategy has resulted in earlier bookings and stronger year-on-year sales growth, it said.
Summer sales are up by 21% as more holidaymakers choose longer trips.
Forecasts up
Specialist holidays, which take in the premium end of the market, are particularly beneficial as price competition is less fierce. Sales in these type of breaks have risen 33% over the year.
 | We would imagine that First Choice is now around 65% sold for the whole year |
The activity sector, which includes sailing and trekking holidays, produced the weakest growth with a 7% rise.
ABN Amro reckons that if the sales trend continues this could put another �5m ($9.5m) on its full year profits forecast for First Choice of �112m.
"Trading is clearly strong and we would imagine that First Choice is now around 65% sold for the whole year," said Simon Larkin, analyst at ABN Amro.
The group's brands include Unijet, Falcon and Sovereign.
Back in December, the company unveiled a 13% rise in pre-tax profits to �98.3m.