NEWS — HOT STORIES 4
Cruise1st attracts potential buyers as owner Royal Caribbean puts agency up for sale
could be struck within the next couple of weeks. Dan Townsley, chief executive of Cruise1st, said
he was eager to weigh up options for the business, adding: “We’re in a position to explore our options and make the right choice for the business that will support our ambitious growth plans.” The agency launched in 2000 and was acquired
by Island Cruises three years later. Following the merger of First Choice and Tui UK, Cruise1st became wholly-owned by Royal Caribbean Cruises in 2008. In the past four years the agency’s booking numbers
are claimed to have grown by 83%, and Townsley said the business had “aggressive expansion plans”. The cruise sector has witnessed several acquisitions
Hollie-Rae Merrick
Royal Caribbean-owned cruise agency Cruise1st has been put up for sale and is understood to have attracted at least three potential trade buyers. It is known that at least one of the cruise specialist agencies interested in buying the business has submitted an offer for Cruise1st, which is a trading division of Sunshine Cruise Holidays and employs more than 100 staff in the UK, Australia and Singapore. In a statement, Manchester-based Cruise1st said
it was “exploring the possibility” of an external sale and also strongly considering a management buyout. Royal Caribbean declined to comment. A source told Travel Weekly that a deal
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in recent years, including Iglu Cruise’s purchase of Planet Cruise in 2013 and dnata taking a stake in Imagine Cruising last month. Private equity firms have also shown interest in
“We’re exploring our options to make right choice for the business”
cruise businesses, with both
Cruise.co.uk and Iglu Cruise receiving backing. The latter received further investment last week in a deal, believed to be worth £60 million, with private equity backer LDC. This prompted Iglu founder Richard Downs to say he was looking at acquisitions.
Business flyers brand Lufthansa ‘reckless’ Ian Taylor
move business travellers to other airlines.” The association declared the Lufthansa agency
Corporate travel buyers delivered a blow to Lufthansa’s plans to impose a GDS booking fee as their association, the Institute of Travel and Meetings (ITM), gave a withering assessment of the carrier’s move. The ITM called it a “maverick decision” and “reckless”, saying Lufthansa had acted “without any consultation”.
Lufthansa announced on June 2 that it would levy a €16 distribution cost charge (DCC) on all GDS bookings from September 1. The ITM wrote to the carrier last week demanding it scrap the plans. An ITM survey suggested three-quarters of its members will consider moving business away from Lufthansa, and the institute said: “Others have already confirmed they will immediately start to
6 •
travelweekly.co.uk — 25 June 2015
portal, which will offer the only way to avoid the fee, “not fit for purpose [since it] cannot provide interlining, booking changes, amendments and cancellations”. ITM chief executive Simone Buckley said: “The announcement came as a shock to many members. The blatant disregard for their interests has left many angry. It’s beyond disappointing that the Lufthansa Group treats loyal, high-yield customers in the same way as one-time bookers in the leisure sector.” Abta confirmed it is working with
European sister organisations “to look into the
legal implications” and will be writing to Lufthansa “raising our concerns at how this will impact agents”. Travel Weekly understands lawyers at several organisations are considering a legal challenge.
MORE HOT STORIES
“We will be raising our
concerns at how this will impact agents”
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