RE: View of Easyjet Holidays28 Mar 2025 10:53
For what it’s worth, I have no experience of EZJ Holidays as a product or how it stacks up against the competition. But from a business model perspective I think it is a master stroke in that they do not buy in the hotel capacity, they act as a portal. As well as filling seats, possibly with good margins, I believe they also take a fee or commission. So there is limited capital outlay/risk.
I do think, from a marketing/advertising perspective, they should push the short/city break angle more. You can book one of course but it is not actively marketed. People do like short breaks away, whether in the UK or otherwise and I think there is a market there to be tapped. On the EZJ website/App there are two options; book a flight or a holiday. Why not have a third overt option/button for Short Breaks so it is obvious. A bit more marketing effort could fill more seats IMO. My understanding is that once you hit circa 70% load factor, any additional revenue is essentially pure operating profit.
Separately, I still think more UK regional is there to be had. I am a bit biased as Southampton is my local airport but I’d like to see more from there. I’d love to see them dip their toe in the water and try a few flights a week to Jersey, actively pushing the short break. At last count EZJ had tie ups with 16 hotels there but I don’t want to traipse to Gatwick. There’s a significant population with an hour travel time of the airport and it is ideally placed for both road and rail.
There’s obviously market turbulence at the moment but I’m in for the medium to long term, I don’t currently trade (but thinking of it small time in the next tax year). But I think they have a good balanced business model that will stand the test of time.
GLA
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