European budget supermarket chain Aldi has scrapped its online travel service almost a year after it launched the product amid great fanfare in the sector and with a promise of cheap holidays.
Aldi Travel UK was unveiled in January 2009 as a result of a deal with On Holiday Group to run the servicing and package holidays offered on the site.
The site currently says it is "reviewing" its travel service but customers that have already booked trips are not affected by its closure.
A spokesperson says:
“We have decided to withdraw the Aldi Travel service while we review our offer to ensure we continue to provide customers with the best value deals available.
“Aldi Travel proved popular with customers and sales have performed well throughout 2009. However, the UK travel market is becoming increasingly competitive and we are working in consultation with existing partners to make sure we can continue to offer market leading deals.
“All arrangements for booked holidays remain unchanged and customers will be able to relax and enjoy their holiday as planned."
“We have decided to withdraw the Aldi Travel service while we review our offer to ensure we continue to provide customers with the best value deals available.
“Aldi Travel proved popular with customers and sales have performed well throughout 2009. However, the UK travel market is becoming increasingly competitive and we are working in consultation with existing partners to make sure we can continue to offer market leading deals.
“All arrangements for booked holidays remain unchanged and customers will be able to relax and enjoy their holiday as planned."
Aldi is believed to be re-examining its entire UK business as it deals with the ongoing threat from the likes of Tesco, Asda and Sainsbury for budget groceries.
Ahead of its launch, OHG chief executive Steve Endacott said the launch of Aldi would not be affected by the economic downturn and the site would probably thrive given the belt-tightening taking place among consumers in Europe.
The UK launch of Aldi Travel followed similar launches in Germany and elsewhere in Europe, although the travel sites in both countries are still in place.