EasyJet holidays has been negotiating contracts with hotels that were previously exclusive with competitors.
In its Q1 financial results statement, easyJet said it was “continuing to build on our unique position within the holidays sector”.
“Our purpose-built, highly scalable business model ensures low fixed costs (93% variable) and strong marginal profit contribution,” said the company.
“We continue to enjoy strong partnerships with leading hotels without the need for financial commitments or inventory risk.
“During Q1 we signed a further 35 high quality hotels which were previously under exclusive contracts with our competitors.”
Four- and five-star hotels now account for 70% of all holidays sold and these hotels generate a margin premium, easyJet said, adding its low cost base “ensures that we are able to offer outstanding value”, with 75% of holidays offering “the best value in the market on like-for-like searches, whilst still providing strong marginal profit contribution”, it claimed.
Holidays for winter 2021/22 were launched in December and are experiencing “very positive demand”.
Bookings for summer 2021 are currently “significantly ahead of last year”, although easyJet admitted it was evident that “many customers are looking for further certainty around quarantine rules prior to booking”.