CONSUMERS will lose out heavily in the price war currently being waged between Budget Travel, the country's biggest tour operator, and newcomers Thomson Holidays.
Travel agents said yesterday the holiday market to the sun in 1996 was massively oversupplied and inevitable cutbacks would mean flight cancellations even for some holidays already booked.
This will pave the way for legal action against the tour operators under EU law which was enacted in the Dail last year.
The Department for Transport Energy and Communications is considering an intervention to force the tour operators to take a more realistic view of what they can offer holidaymakers in the current year.
In the latest development of the price war, Budget Travel has told travel agents that if they switch clients from Thomson to Budget will absorb the deposit already paid to Thomson as part payment of the new holiday. "Don't take a chance with your clients. Go with the people you know," said Budget in a fax to the country's travel agents.
"I would have thought that is not the way to do business" Mr Kevin Dufficy, Thomsons' general manager for Ireland, told The Irish Times yesterday.
Mr Brian Rafferty, chairman of the Irish Travel Agents' Association (ITAA) retail committee, said yesterday up to 50 per cent of holiday already booked may have to be re booked as the tour operators acknowledge there are too many seats on offer. Mr Rafferty predicted a big backlash from consumers when they realise the choice of price, flying times and even destination will be less than that currently on offer in the brochures.
The ITAA has asked Mr Emmet Stagg, Minister for State in the Department, to force the tour operators to take a more realistic view of what they can sell. A spokesman for the Department said Mr Stagg was considering the merits of the case put to him by the ITAA and, if warranted, he will seek a meeting with the tour operators.
Mr Dufficy said yesterday he was concerned by speculation that Thomson Holidays was misleading Irish customers about its flying programme from Dublin. The Thomson brochure gives flying times but Thomson has yet to sign a contract with an Irish airline, which might not have aircraft available at the printed times.
Mr Dufficy told The Irish Times he has a contract with Brittania Airways, a Thomson subsidiary, with can be activated "in a couple of hours" if they cannot reach agreement with an Irish carrier. There is nothing misleading about the Thomson brochure and he anticipated no problems with EU legislation. "Thomson has remained the UK's leading tour operator for the past 21 years with a strong reputation for quality and value. Thomson intends to have the same reputation and success in Ireland," Mr Dufficy said.