Former Crystal Palace manager Steve Coppell believes the club can still beat relegation if they get their managerial appointment right.
Palace have collected just four points from their first 11 games of the season and Holloway's eventual successor will face an uphill task to stave off the drop.
Coppell, who has had four spells in the Selhurst Park hotseat, said: "Nowadays the parachute payments do protect clubs to a certain extent but survival in the Premier League is what every club in the land aspires to do.
"You want to be competing against the best on a week-by-week basis.
"I know there is a huge desire at Crystal Palace to get this right and become very solid fixtures at this level.
"If they survive this year then I think you always have a better chance in the second year.
"They are going to try like anything to stay in the Premier League.
"I don't think Steve Parish (co-chairman) has panicked, I think he is going through a very thorough process of trying to find the best man for the job.
"I've got every confidence he will come up with the right combination."
Coppell, now director of football at League One Crawley, has himself been linked with a return to Palace in an upstairs role and he would not firmly rule out the possibility.
The 58-year-old said: "I have probably spent a quarter of my life working for Crystal Palace so I have got a huge soft spot for them.
"People always say never go back, but I have been back four times now. The best thing for me to say is never say never."