easyJet Tight-Lipped Over Expansion Rumours
Cheap flights carrier easyJet reacted coolly yesterday to reports that it is readying itself for a massive expansion of its cheap holidays business.
Travel operators believe that easyJet is preparing to adopt the role of a major player among a new "big three" of tour operators. It could expand its services to offer cheap hotels alongside the cheap flights to Europe and beyond that are already available via its website.
Travel portal TTG Live said that the move was expected to take place "within months", adding that such an expansion would present a strong business challenge to established travel agencies, rival cheap fares airlines and independent operators alike.
TTG pointed out that easyJet founder Sir Stelios Haji-Ioannou has declared that he wants to use the umbrella company easyGroup to launch easyHolidays, which will offer customers cheap flights, cheap car hire and cheap hotels, all under one brand.
However, easyJet the airline has been at odds with Sir Stelios for some time about the future direction of the brand, meaning that the expansion could come from the carrier itself. Last weekend, a debate hosted by Youtravel.com raised fears about the plans, with some travel bosses arguing that easyJet was ready to "take a stronghold" in the cheap holidays market.
Rock Insurance managing director Antony Martin said: "When easyJet comes out with its own direct competition it will pose the biggest challenge to the big tour operators. It's going to be dynamic packaging but from a better position, because it has got competitive rates with flying, accommodation-only, and it has got the transfers. It could become one of the big three, after Thomas Cook and TUI Travel."
When asked by TTG to respond to this, easyGroup would only say that "Sir Stelios and easyGroup do not wish to comment on rumours".
Travel Industry News posted by 
on 09 October 2010
