p2 contents jan23 21/1/09 21:42 Page 2
Why the trade should
be able to avoid
news
‘Travel Armageddon’
SOMEONE described the current climate to me this
week as “Travel Armageddon”. Pretty scary stuff.
He mentioned two well-known companies that
are apparently dangerously close to collapse and
also told me he is advising anyone who will listen to
cut costs like there is no tomorrow.
Unfortunately, the reality is that there will be no
tomorrow for some. But in the space of a few days,
this week
he also told me that those two particular vulnerable
firms looked like being saved, either by investors or
by being acquired.
So for every high-profile failure, behind the
scenes there are companies that are edging close to
the precipice but being rescued.
And while the sale price or investment might be
low, such intervention shows there are people and Double docker
companies out there in strong enough positions – Visitors to the Caribbean island of Grenada saw double this week when both
and with the long-term confidence – to take some of Ocean Village ships were in port at the same time. An inter-ship cricket match
the struggling ones on. was won by the newer Ocean Village Two – by just two wickets. Meanwhile,
Even if balance sheets are poor and cost bases operators and agents have insisted cruise is unaffected by the downturn. p22
high, one of the things that might sway an investor
or suitor could well be a committed and driven Air. between its business and leisure
workforce. So the worst thing staff could do right Flight Options buys Kiss p5 travel divisions
now is give up hope. Kiss Flights, the seat-only operator
Equally, the worst thing that we, as an industry, run by former bosses of failed XL Conference.
could do is talk ourselves into that end-of-the world Leisure Group, has been bought Aito to grow campaign p12
scenario. by operator Flight Options for an This year’s Aito Week will be
To try to pretend that life isn’t tough at present undisclosed sum double the size of last year’s
would be akin to sticking our heads in the sand. inaugural campaign, bosses of
But there are bright spots. Companies are being Travel Gives Back. the association revealed at this
saved, others are being sold and there are still Fair Fares campaign p6 week’s Specialist Travel Agents
people telling us of their plans for expansion. TTG’s bid to overturn planned domestic conference in Warwick
Just this week, Flight Options announced its new rates for Air Passenger Duty,
intention to rebuild its once sizeable seat- which would result in higher Tips.
only business following the consolidation taxes on flights to the Caribbean Agency survival advice p14
of the big four, the collapse of XL and its than to most of the US, has won Slashing prices is not the way
acquisition of Kiss Flights. high-level support from ministers forward, industry bosses agreed
One of its bosses admitted the move was at this week’s Caribbean at an industry debate
“opportunist”. Marketplace in St Lucia
But he also pointed out that the Cruise.
purchase provided Flight Options Travel Foundation. Recession? What’s that? p22
with a clear path to profitable Responsible sector strong p7 Cunard and Royal Caribbean
growth and secured the jobs The recession will not deter Cruise Line have reported a strong
of Kiss Flights staff, its own holidaymakers who opt for start to 2009 sales, the latter
workforce and many smaller sustainable trips from travelling claiming enquiries to its call
DIY agents who might be finding this year because they remain keen centre are up 50% in January
access to capacity and keen prices to support destinations, a Travel
putting a strain on their businesses. Foundation forum was told SECTORS.
Maybe judgement day can wait. Cruise p22
Crossover. Operators p28
Co-op plans closer ties p9 Hotels & resorts p30
Lucy Huxley Editor The Co-operative Travel has Air p32
revealed it plans more co-operation Business travel p36
02 23.01.2009
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