p4 news Apr10 7/4/09 21:51 Page 4
news
10.04.2009
Freudmannwill
Long: ‘We’re coming
stay as ITT chair
THE ITT BOARD has given its chairman Steven
through recession’
Freudmann its “unanimous support” after he
reluctantly stepped down from the Abta board
over the collapse of Unpackaged Holidays.
Lucy Huxley and Chris Gray.
have,” said Long. “There’s still a long
Creditors of Unpackaged, which traded as TUI TRAVEL chief executive Peter way to go and it won’t be an easy
Seligo, forced Freudmann’s resignation from Long has indicated the recession
C
O
journey but the core of our cus-
Abta’s board and code of conduct committee last may be bottoming out as latest
STO
VER
tomers will still go on holiday.”
week and have since threatened to press for his figures obtained by TTG show a rise
R
Y The latest statistics from travel
departure from his lead position at the ITT. in consumer confidence. research firm Gfk Ascent MI showed
But speaking immediately after Tuesday’s ITT The glimmer of hope came despite bookings up to the end of February had
board meeting, ITT president Trevor Harding the latest UK travel market intelligence showing fallen 19% in short-haul, 10% in medium-haul
said: “Following the board meeting this afternoon, a 14% year-on-year fall in bookings up to the end and 13% in long-haul.
the board has unanimously supported Steven of February for summer this year and a 32% Greece and Spain were the worst hit
Freudmann in his role as chairman of the ITT.” drop in bookings for next winter. destinations, down 27% and 23% respectively,
Freudmann’s involvement in the Unpackaged Despite those falls, research by GfK NOP but Egypt was up 15% and Turkey up 34%.
collapse and his suitability to continue in his role showed consumer confidence had risen by five The big fall in winter bookings could be the
as ITT chairman was brought up in “any other points in March compared with February, even result of the trend towards later booking among
business” at the ITT board meeting. though it was still down year on year. consumers who were waiting to see what
Freudmann was a director of Unpackaged until Long said the data suggested “things were happened to the economy, said GfK Ascent MI
two weeks prior to its collapse last month. Critics picking up” and added: “We’re in a recession but managing director Sarah Smalley.
claim Freudmann behaved “immorally and my sense is that we are coming through it and However, All Leisure Group chairman Roger
unethically” but several industry figures have we’re not going into a depression.” Allard said 2010 would be worse than 2009
rallied around him. The economic environment was more uncer- because the pound would weaken further,
He is widely credited as having turned around tain than a year ago but a half of all households bringing double-digit price increases that would
the fortunes of the ITT and restored it to its status were paying less on their mortgages because of push down demand.
as a prestigious travel “club” for senior executives. interest rate cuts, and drops in food and energy “The economy will get worse before it gets
costs meant they had 20% more disposable better,” he said.
Arnott bought
income than a year ago, he said. “The industry is going to end up in a totally
“Twelve months ago. . . although it was more different shape to what it is now.”
stable, people were more worried than they are
HWT in own right
now about how much disposable income they ■ Exclusive Peter Long interview, p12
THE NEW owner of the Harvey World Travel chain
State of the market
has said he bought the company in his own right
rather than through his agency, Vacation Travel. CONSUMER CONFIDENCE MARCH 2009
Stuart Arnott said HWT was purchased by a ■ Overall up 5 points to –30
company of which he owns 100% of the shares.
■ In economy for next 12 months up 9 points to –31
Arnott spent his first week in charge visiting
■ About making major purchases up 1 point to –23
five shops, and said staff had “renewed enthusi-
■ In personal situation up 2 points to –6
asm” for the company. Sales were within 88% of
Minus figures indicate level of pessimism; a positive figure would indicate optimism. Figures compare March with February. Source: GfK NOP
target in the first week, he said. LEISURE TRAVEL MARKET FEBRUARY 2009
Arnott added that there was no need for any ■ Overall bookings –14%
immediate investment in the chain, but if it was
■ All-inclusive bookings +11%
felt to be needed after several months’ trading,
■ Total booking value –12%
the company would be able to raise the money
■ Average selling price up £10
itself without the need for an outside investor.
Source: GfK Ascent MI. Figures are year on year
04 10.04.2009
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