Tag Archives: Thomas Cook

One in three Brits did not holiday in 2011

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WTM: One in three Brits did not holiday in 2011, study finds

Nov 07, 2011 14:46PM GMT

WTM: One in three Brits did not holiday in 2011, study finds

Holidays are now seen as a discretionary spend rather than a necessity, according to the World Travel Market 2011 Industry Report (pdf).

The report, which  polled more than 1,000 UK holidaymakers, showed that over a third (38%) did not have a holiday this year. A holiday was counted as seven nights in the UK or overseas.

In order to find 1,000 holidaymakers who had been on holiday, the report actually had to survey 1,611 consumers. Of those that did holiday in 2011, almost six out of ten (59%) only took one.

The low figure was blamed on the impact of the recession on household budgets, and the increase in Air Passenger Duty.

More than a quarter, 26%, said the increase in costs of travelling due to taxes was a major issue. Just over a third, 31%, said they will travel less often. For 5%, 2011 was the first year they did not travel abroad because of the increase in the cost of holidaying due to taxes.

WTM chairman Fiona Jeffery admitted the findings that consumers no longer viewed holidays as “sacrosanct” was a concern.

“For the first time the report indicates people are beginning to cut back on having a holiday and that is a concerning sign,” she said.

But the report highlighted opportunities for the industry, such as the London 2012 Olympics and potential of the emerging BRIC nations – Brazil, Russia, India, China and South Africa.

The report, which also polled the views of more than 1,000 senior industry executives and WTM exhibitors, showed more than eight in ten executives believed major sporting events would have a positive impact to London and the UK.

However, UK hoilaymakers remained uninterested in the games with only 8% saying they would incorporate the London Olympics into their holiday.

Monarch denies previous refinancing ‘failed’

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Monarch denies previous refinancing ‘failed’

By Ian Taylor |  Nov 03, 2011 12:30PM GMT

The Monarch Group has denied a £75-million refinancing of its loss-making airline was necessary because a previous financial restructure had failed.

Monarch executive chairman Iain Rawlinson said: “The 2009 refinancing was a success. It allowed the business to return to profitability last year.”

The group announced the £75 million cash injection from its controlling shareholders, the Swiss-based Mantegazza family, on Thursday. The move followed a £45-million refinancing two years ago.

Rawlinson reported a £45 million loss for the year to October 31. But he told Travel Weekly: “What we are looking at here is a response to a long-term re-shaping of the market.

“We made a decision in May this year, when oil prices had been $110 a barrel for several months, that high oil prices were here to stay and we had to reshape the business. That was the priority.

“We spent May to July developing a plan for a changed, higher-price environment and that is what the shareholders have accepted. We are taking the initiative to ensure the business can operate successfully in a changed environment.”

Rawlinson said he did not expect market conditions to improve next year and consumers would have to adjust to paying higher fares.

He said: “It is inevitable the cost of flying is going to rise. Fuel costs have increased on average 25%-30% this year – although I’m not suggesting all that will be passed through to consumers. It is incumbent on all of us in the industry to run our businesses more efficiently.”

Rawlinson conceded: “We made a substantial loss [on the current year]. We are very cautious about 2012. But prospects for recovery in 2013 are better. We expect the market in 2013-14 should show some signs of recovery, based on a hopeful return of consumer confidence.”

He attributed the losses for 2010-11 solely to Monarch Airlines, reporting tour operator Cosmos and the group’s aviation engineering business, Monarch Aircraft Engineering, had been profitable.

Online discounts ‘blocked’ agents from selling Kuoni, admits new MD

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Online discounts ‘blocked’ agents from selling Kuoni, admits new MD

Oct 05, 2011 07:50AM GMT

Kuoni’s online discount of 5% was the one remaining “blockage” for agents working with the operator, according to new managing director Derek Jones.

Jones made the comments following the operator’s decision to phase out online discounting from the end of this month.

Admitting that the issue of online discounting was “deep-rooted in the trade”, he said it was something he wanted to immediately address once he started his new role this week.

“It’s been under review for some time because it’s all about being multiple-channelled and any tension between those channels is a problem if we are trying to say that Kuoni is all about great service.

“Customers find it jarring if they go into a shop having researched online and then have to effectively start negotiating on price. It’s plainly ridiculous to have agents having to compete with our other distribution channels.”

Jones said the online discounts that had been available on Kuoni’s website had made agents cautious about using the site at all – even the special agents’ section.

“We’ve done so much with training and with working with so many good independent agents through Tipto and Travel Weekly’s Aspire luxury travel club but the online discount was the one thing that kept standing in the way. So as hard as we worked on all those other things for agents, we were never going to get the full benefit until we ditched it.”

Jones revealed Kuoni was adding new functionality to its trade site that would benefit agents.

“We have a dynamic calendar that gives agents the latest price on any date, but it will now also show them the availability left and also if there are any Kuoni Plus special deals to be had. It’s this kind of thing many agents have been missing out on because of the blockage caused by our online discount and they will hopefully now feel comfortable using our site.”

Jones said agents would probably get a chance to convert more sales from the move.

“Having looked at the mechanics, we only need to deliver a small increase in conversion from out independent partners to make it all work.”

Travel agents welcomed the move to drop the online discount, calling it “the best news the trade’s had in years”. They urged other operators such as Hayes & Jarvis and Virgin Holidays to follow suit.

Nick McKay, director of Clapham-based Travel Designers, said: “This will start to send out the message it’s not always about price.”

Dave Criddle Travel homeworker Lynne Fuell said: “I would like to see other larger operators doing the same thing.”

But rival Hayes & Jarvis, owned by Tui Travel, ruled out a similar move. Clare Tobin, managing director of Tui Travel’s specialist businesses, said: “The trade has our best offers in the market anyway.”