UK budget operator EasyJet is aiming to launch a new holidays business over the next month, which it forecasts will break even during its first year.
UK budget operator EasyJet is aiming to launch a new holidays business over the next month, which it forecasts will break even during its first year.
The airline says the EasyJet Holidays arm will open in the UK market before the Christmas period and start taking booking for the winter 2019 and summer 2020 seasons.
It is aiming to capitalise on the 20 million passengers who fly with the carrier to European leisure destinations, pointing out that only 500,000 currently book accommodation with the airline.
EasyJet chief executive Johan Lundgren says the development will bring “flexibility and excellent value” to the package holidays market which, the company says, is worth £61 billion in Europe and £13 billion in the UK.
The carrier says it identified a “significant opportunity” last year to establish a “financially meaningful” business in the sector.
“We have built a brand new organisation, from the ground up, to replace the previously outsourced commission-based model,” it says. “So we can directly sell to customers and grow our business quickly and at scale.”
It acknowledges that customers are moving away from traditional seven- and 14-night packages, and that its new operation will instead offer “unrivalled” flexibility enabling passengers to tailor holidays.
The company believes the holidays business will break even in its first financial year.
EasyJet’s emergence in the market follows the demise of UK leisure carrier Monarch Airlines and, more significantly, the collapse of Thomas Cook Group in September this year.
The carrier says it has the chance to become a major participant in the holidays market, for a low upfront investment and exposing itself to limited risk.
“We believe there is a gap in the market for a modern, relevant and flexible business for today’s consumer,” says Lundgren.
“We are now able to offer our customers more than 100 amazing beach and city holiday destinations, pairing Europe’s best short-haul flight network with more than 5,000 of Europe’s best hotels.”
