IT'S been a frenetic year for the Irish sunshine package tour business. The announcement this week that the Granada owned Budget Travel is to be absorbed by British tour operator Thomson Holidays comes as no surprise to industry watchers. Granada, financially battered by its bruising takeover of the Forte hotels group, has no place for package holidays in the new regime.

The price paid by Thomson has not been disclosed but Budget Travel is thought to be worth around £10 million. On that basis, Budget's joint managing directors, Ms Gillian Bowler and Mr Harry Sydner, who did very nicely in the previous pass the Budget Travel package, are in line to receive about £1 million for their 10 per cent minority share holding.

But of more importance to consumers is the competition and price implications with the market now controlled by two major players. In September First Choice, the British owner of Falcon Holidays, bought the sun holiday division of JWT for £5.3 million, giving it around 45 per cent of the sunshine package business in Ireland. Thomson entered the Irish the market only eight months ago amid bitter accusations from Budget Travel.

The Department of Enterprise and Employment has rubber stamped the deal arguing, some what incongruously, that individual market share remains the same despite the new alliances. But rising concern could yet prompt a reevaluation.

With diversity of choice over the past few years ensuring price competitiveness, next year's colourful brochures may show whether holiday makers will get more than their fingers burnt on a two week escape to the sun.