p10-11 townsley jan9 7/1/09 17:27 Page 11
ttglive.com
Gold Medal sale news
hy Cook deal was best
invade Iran or how many pounds there are to the “Initially, Thomas Cook wants us to just run a
Rags to riches: Townsley’s story
dollar. I am pleased to get some of the stresses self-sufficient operation and to deliver maxi-
and strains off my shoulders. I still own 50% of mum return for them and the best earn-out. Ken Townsley’s sale of Gold Medal marks
the business, but it’s a big way of de-risking it.” Anything else would be a distraction. the culmination of a rags to riches tale:
He claimed stability for the Gold Medal staff “Thomas Cook is getting a great deal as we
was his number one priority when weighing up bring our negotiating skills with airlines and ■ He started out in travel aged 15 in 1961
which suitor to accept. hotels to the party. Hopefully, Preston will be as an airline traffic officer apprentice for
“We’re not a London company with London- handling all air travel arrangements for all Silver City Airways at Blackpool airport,
type people. Some of my staff have never 800 Thomas Cook shops going forward, so that a job that involved baggage handling.
worked for anyone else in their life,” he added. should be a real benefit to Cook.”
“So to get a deal where I could be pretty well That said, Townsley believes having the ■ Townsley then moved on to set up a
assured that Preston would be safe was crucial. Thomas Cook ‘badge’ on his product range will one-shop agency called Trident Travel in
“Cook has agreed to take the building on a boost sales considerably, as well as bringing Blackpool, focusing on group trips. “I
long-term lease. Besides, we didn’t want our major benefits to independent agents. started with a big trip to see the heavy-
customer service being diverted to India.” “I believe being able to tag Gold Medal prod- weight boxing match between Muhammad
He claimed staff had reacted “really well” to uct with the Thomas Cook logo will add another Ali and Joe Bugner in Kuala Lumpur.”
the sale. “They trust me after 35 years. This 25% to our figures. Plus, agents are getting
deal gives the staff the greatest possible more financial security with Gold Medal from ■ Townsley claims to have operated the
security of any deal that I discussed.” its association with Thomas Cook. UK’s first-ever charter to Disneyworld in
“Belonging to a big organisation Florida, with Trans America Airlines.
OTHER SUITORS with its greater financial security
Townsley revealed: “It’s fair to say should give independents the ■ When BA launched a flight-only consumer
there was a lot of interest. There assurance that they want.” product to the trade called Pound-
were two or three other people that stretcher, Singapore Airlines approached
we were talking seriously to. INDEPENDENT AGENTS Townsley to do the same to Australia.
“We had another offer from a Townsley insisted that tying up with
major overseas company which “Incredible”: Fisher one of the big two would not damage ■ He bought the company that was doing
wanted to enter the UK market but Gold Medal’s links with independents, north of England contracts with Qantas
we couldn’t agree terms, and I thought the with whom it has worked hard to engage. and formed Gold Medal Travel. “We did
Thomas Cook offer had more legs.” “Let’s face it, we will probably lose our Tui lots of giveaways such as free stopovers,
He added that one of the deals was for Gold racking deal by selling to Cook, so I can’t free London nights. Our best gimmick was
Medal to buy someone else, with arch-rival, believe Cook would do anything to jeopardise a month’s free insurance to Australia.”
Stella UK-owned Travel 2, tipped as the target. Gold Medal’s independent strength,” he said.
Townsley refused to confirm that rumour, but “We will continue working with all the ■ He put Airline Farebank on viewdata and,
said that to complete any deal in the current consortia. We’ve already had conversations rather than listing published fares, Gold
climate was a phenomenal achievement. with senior heads of those groups and those Medal became a consolidator.
“I brought Terry in three years ago when the conversations have gone well.”
company was making huge losses. His remit was Asked if agents might switch-sell to trade- ■ Townsley then decided he wanted a guar-
to turn it around, make it profitable and prepare only rivals as a result of Gold Medal’s sale, anteed distribution network, so bought a
it for sale. For Terry to have achieved maximum Townsley argued: “Every large travel firm owns 50% stake in Travelworld, Terry Fisher’s
value out of Gold Medal in a very difficult market, a business-to-consumer company somewhere; 20-shop independent Yorkshire miniple.
when many deals are not getting away, is no one is completely B2B. As an independent The pair grew this to 140 shops before
absolutely incredible. I can’t thank him enough.” agent, your biggest concern is ensuring what- selling it to Airtours in 1998 for £13.8m.
ever you sell to customers is 100% secure.”
THOMAS COOK DEAL ■ A few years later, Townsley discovered a
Townsley explained the deal would ultimately CHARITABLE AMBITION £4.5m black hole in Gold Medal accounts.
be “a 50:50 partnership where Gold Medal and Townsley now plans to set up a charitable trust Townsley brings in Fisher, who helps the
Thomas Cook will jointly develop the group’s supporting deaf, dumb and blind children. firm gain financial stability and returns it
independent travel business”. “It must be so awful to have no senses and I to profitability. Gold Medal now turns over
But he stressed his management team’s want do something to help. I intend to start £300m and is expected to make a £10m
primary focus would be on delivering the right by helping British kids go to Singapore to get profit for the financial year to March.
return for Cook rather than branching out. treatment that just isn’t available on the NHS.”
09.01.2009 11
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