p5 jan9 7/1/09 20:37 Page 5
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news
In brief
STAR AWARDS: The Co-operative
Travel picked up a brace of gongs
■ Bales Worldwide plans 12 job losses at the Sandals Star awards held
Bales Worldwide is proposing to make 12 staff – in the Bahamas and attended
one-fifth of its head office workforce – redundant by 250 agents from the UK and
in a bid to “tighten up” and make sure the North America. Gloucester-based
business is well placed to survive this year’s Co-op Travel Ultra (pictured) was
tough trading conditions. The luxury independent named best travel agency in the
operator has more than 60 staff at its Dorking south-west, the first time a Co-op
base. Several of the 12 employees now in a branch has won the regional
consultation period are part-time workers. title. Tonbridge-based Freedom
consortium member White Sand
■ TTG named as Cimtig awards partner Weddings was named top
TTG will be the official trade partner for this year’s destination wedding travel agency
Cimtig travel marketing awards. The prestigious
awards have been revamped this year and
nominations are due in by January 16. The 35
categories cover consumer, online, television,
radio and trade campaigns. The awards night Cook’s Medhotels buyout
will take place in London on March 16.
■ Astraeus Airlines considers redundancies
Astraeus Airlines is anticipating making “a
will help sector’s margins
handful” of its 198 staff redundant this year as
it completes its transformation from running
Lee Hayhurst.
as managing director of both brands and they will
charter and scheduled services to becoming an THOMAS COOK’s buyout this week of Medhotels continue to be run separately, Cook confirmed.
aircraft leasing company. A spokesman said the is expected to increase prices and margins in Lastminute.com chief executive Ian McCaig
company was in “robust financial health” and what has been a ferociously competitive sector. said the sale of Medhotels allowed it to
was set to make a profit in 2009. The redundan- Cook, having also bought Hotels4U.com last concentrate on its core business of marketing
cies were in roles no longer needed because of year, is now estimated to control about 40% of and technology. He said the deal, for an
the changed nature of the company, he said. the bed bank market, enough to enable it to undisclosed sum, was one neither side had to do,
drive up prices. but one which made sense for both firms.
■ Flyglobespan drops Aberdeen route Sources said prices needed to be increased “Our core business is not being a bed bank;
Flyglobespan has dropped a second route from by just a few pounds per passenger to restore however, it is offering the kind of content to
Aberdeen airport due to poor demand. It margins to more financially sound levels. consumers that bed banks have. Part of Cook’s
scrapped its Gran Canaria route this week, two It is believed margins have slipped in recent core business is operating bed banks. It makes
months after it dropped its Sharm el Sheikh years from around 11% to as low as 6%. sense to focus on our respective businesses.”
service from the airport, and will not repeat a With the UK’s two biggest bed banks owned McCaig denied lastminute sold Medhotels
summer Barcelona service next year. by Cook, On Holiday Group’s Holiday Brokers now because of dwindling margins.
claims to be the largest independent supplier, “Look at any part of the travel business – there
■ HRG facing takeover by Dutch shareholder? ahead of Youtravel.com and Lowcostbeds. is always margin pressure in the long term.
Beverweerd Investments has increased its Steve Endacott, On Holiday Group chief Medhotels and bed banks continue to operate
shareholding in travel management company executive, said: “We expect the new market profitably,” he said.
HRG to almost a fifth, stoking rumours it is leader to lead the hardening of prices, which all Ian Derbyshire, Cook’s chief executive of
gearing up for a takeover. The parent company providers would welcome. independent travel business, promised to
of BCD Travel now owns 19.05% of its UK rival. “The market has virtually reached maturity. continue to support agents: “Growing our inde-
HRG’s shares sank to an all-time low of 4p in There may be further consolidation, but margins pendent travel business was one of the core pillars
December, and speculation has been rife that the can be controlled by a small number of players.” of Cook’s overall strategy and this allows us to do
Dutch-based company is keen to acquire its rival. Hotels4U’s Haim Perry will oversee Medhotels that more efficiently and more effectively.”
■ Rothwell begins role as Kuoni head
Peter Rothwell, former Tui Travel deputy chief David Burns joint managing director of Travelsphere Group.
executive and Airtours Holidays managing Travel veteran and ex-Airtours executive David Former Airtours group managing director
director, started in his new role as chief executive Burns has died, aged 52, after a short illness. Harry Coe said Burns had an “acute mind, con-
of Kuoni Group on Monday. He is based at Burns worked for Airtours for 13 years and was siderable skills and a phenomenal appetite for
Kuoni’s head office in Zurich. accommodation chief executive when he left in hard work” and would be sadly missed.
2000 to join the Football League as chief executive.
ttglive.com
For the latest news, reviews and comment
He returned to travel in 2005 when he became ■ Letters, p34; and ttglive.com/davidburns
from the travel industry, visit ttglive.com
09.01.2009 05
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