The supply of apartments to British tourists is becoming less profitable for the major tour operators in the British tourism market.
The low profit margins have forced operators to consider reducing non-hotel accommodation by around 30% for next winters season.
The major British tour operators plan to terminate their contracts with many of the non-hotel accommodation suppliers next winter. The main reason for this expected cut in the bookings of apartment accommodation is in the shrinking profit margin generated by the apartments for the large operators such as Thomas Cook and Tui.
Operators claim that say that “apartments that are rented for between €25 and €30 only generate a commission of $3 to $5, even less when you take into consideraation the development of the brochuresm commissions for the travel agents, etc…”.