It’s universally agreed that 19th-century rail buff Thomas Cook was the original package pioneer, but it was nearly 100 years later the concept really – and literally – took off when flying became a possibility for those who could afford it.
The impact of the Gulf War made front page news of the 10 January 1991 edition of TTG
In the 1950s, the glut of former military aircraft was seized upon by one such pioneer, Horizon, which used them to offer package camping holidays to Corsica – a formula it later extended to destinations such as Spain.
Operators had to circumvent rules designed to protect airlines that said any package must not cost less than the return scheduled air fare. To get around this, Horizon, like others, formed a club, but its all-inclusive Corsica package was still £900pp in today’s money.
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It’s universally agreed that 19th-century rail buff Thomas Cook was the original package pioneer, but it was nearly 100 years later the concept really – and literally – took off when flying became a possibility for those who could afford it.
The impact of the Gulf War made front page news of the 10 January 1991 edition of TTG
In the 1950s, the glut of former military aircraft was seized upon by one such pioneer, Horizon, which used them to offer package camping holidays to Corsica – a formula it later extended to destinations such as Spain.
Operators had to circumvent rules designed to protect airlines that said any package must not cost less than the return scheduled air fare. To get around this, Horizon, like others, formed a club, but its all-inclusive Corsica package was still £900pp in today’s money.
But with the relaxation of restrictions on air ticket prices came cheaper travel, and what was originally expensive and exclusive became affordable. These pioneers came and went, and only a few names, like Cosmos, are still familiar today.
Some tour operators were pivotal in opening destinations we now take for granted. The Travel Club of Upminster was one of these, popularising the Algarve in the 1970s. The company, formed by industry stalwarts Harry and Rene Chandler, soldiered on for 74 years, closing in 2010.
Another pioneer was the 1980s market leader, International Leisure Group (ILG), whose brands included Intasun and Air Europe. ILG owner Harry Goodman, enraged by price hikes in Spain, launched bargain Florida beach packages to a willing UK market in 1980 under the Intasun brand.
Goodman, whose storied career is documented in former TTG reporter Dave Richardson’s book Let’s Go, claimed these trips would be cheaper than Spain, with an exchange rate of $2.40 to the pound. Despite scepticism, he contracted Laker Airways to fly to Miami and then Orlando at a price per seat less than it cost to Tenerife.
In just a few decades, the industry went from a provider of expensive breaks for the lucky few to a “pile it high, sell it cheap” mentality.
This was fine when times were good, and ensured excellent cash flow, but could be a precarious business model with operators at the mercy of hazards like currency fluctuations, oil price rises and natural disasters.
The 1991 Gulf War, which saw fuel prices spiral and affected global travel patterns, proved seismic for the industry and its biggest casualty was ILG, which was brought down by its expensive-to- run in-house airline.
One significant winner emerged from the dramatic fall-out. Airtours, which grew from a one-branch agency in Lancashire run by David Crossland, was to briefly usurp Thomson (now Tui) after decades as the UK’s – and one of Europe’s – biggest operators.
Airtours’ early days were marked by numerous consumer complaints about quality and its infamous “flying pig” Boeing 747 that kept breaking down, but nevertheless the value packages it offered were massively popular.
The already big brands, including Thomas Cook, grew even bigger after a frenzy of consolidation from 1997 after the Monopolies and Mergers Commission investigated the industry and found that despite the major operators’ dominance, competition was so fierce and prices so low that consumers were not disadvantaged. As a result, many independent brands were swallowed up.
Airtours rebranded as MyTravel in 2002 to appeal to the internet generation just before a £1 billion hole was revealed in its accounts, with behind-the-scenes government action needed to stop it imploding. All this took place in the aftermath of the September 11 attacks, which hit bookings as consumers feared another Gulf conflict.
Amid this downturn, a tiny airline, Channel Express, which by night delivered freight, flowers and post, morphed into Jet2.com, operating its first passenger service from Leeds Bradford to Amsterdam in 2003.
Jet2 began solely as a no-frills carrier, and low-cost airlines – which offered unrivalled flexibility and fares – began to dominate short-haul flying, having commoditised it via the internet.
This meant legacy brands had to consolidate and evolve rapidly to survive. In 2007, MyTravel and Thomas Cook merged, with Thomson and First Choice subsequently following.
Today, the market has evolved once again. It has become a four-way fight between operators with their own airlines, airlines with tour operators as a sideline, long-haul and destination specialists, and OTAs.
The latter have had a huge impact in the space of little more than a decade – now, half of the top 10 Atol holders are classed as OTAs. As these brands move further into the package travel market, they will grow – and perhaps dominate – the list of Atol holders.
The structure of the package travel industry may be changing yet again, but with almost 32 million passengers forecast to be protected under the Atol scheme in 2024, it’s certainly not dead.
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