p2 Apr24 22/4/09 21:47 Page 2
The tragedy is that
Freedom Direct news
should not have failed
NEWS THAT one of the UK’s largest online travel
retailers had collapsed last week marked another
sad day for the industry.
And it was particularly frustrating as it arguably
should not have failed.
Newcastle-based Freedom Direct had a lot of
good things going for it.
It was a solid, efficiently-run business that was
this week
apparently liked by suppliers for paying its bills on
time, had a good reputation among customers and
was known for treating its 100 call centre staff well.
Founded 12 years ago, it had embraced the
dynamic packaging revolution, paying for an Atol
licence from the CAA to ensure its customers were
covered. In recent weeks it had unveiled a revamped
website, with a bespoke inhouse build.
But in the wake of XL Leisure Group’s failure last
year and its impact on the bonding market, Freedom
Caribbean comes to Newcastle
Direct found it could not renew its Atol this year and Online retailer Monster Travel celebrated its first birthday with a Caribbean-
opted to join the TTA instead. style summer-holiday-at-work day. In this week’s TTG the firm’s founder,
However, it appears to have simply run out of time David Hawke, talks about his sadness following the collapse of fellow
and cash. Naive, maybe. But it’s still a great shame. Newcastle travel agent Freedom Direct Holidays. p10
So why was it allowed to fail? Surely everyone
could have pulled together to save it? After all, such Belfast agency. No-frills fares.
a collapse doesn’t do the consumer any good and ‘Your jobs are safe!’ p4 EasyJet pulls the plug p9
dents the somewhat tarnished reputation of the The boss of Northern Ireland-based EasyJet has told technology
travel industry a bit further. Knock Travel has “recession- partners that they must stop
Worse still, it puts an extra £2 million-plus call on proofed” her staff’s jobs, telling distributing its fares to leisure
the Air Travel Trust Fund, which it can hardly afford them they are safe in 2009. agents from this September
given its debt position following XL’s demise.
To be fair, it seems the CAA did all it could Fair Fares. UK Cruise Convention contest.
to keep the company going, allowing Freedom APD: UK election debate p5 Call for Roving Readers p12
Direct customers to travel over Easter without Caribbean governments have joined TTG is searching for 10 agents to
cover. forces to make Air Passenger Duty be Roving Readers at the UK Cruise
Given it would normally pull the plug on an issue at next year’s general Convention in June
companies without a licence after just a day election by mobilising support
or two, one can only presume it believed the in key marginal UK seats City & finance.
retailer could pull through. Jet2.com set for profit p14
Perhaps the most galling thing is, with Air. The owners of no-frills airline
a bit more notice, the right people Virgin slams BA incentives p6 Jet2.com claim it will deliver full-
could have been called in to put Virgin Atlantic has threatened year profits ahead of expectations
together a rescue package. legal action against British
So what happens now? Airways, claiming it suspects its TTG Travel Awards 2009.
It may be cold comfort for its rival is abusing its dominant Last chance to register p18
founder, Martin Jones, but don’t position to incentivise agents You still have one week to register
be surprised if someone swoops to to enter this year’s TTG Travel
snap up what’s left of Freedom Direct Cruise. Awards – don’t miss out!
so its best assets, such as some of Ex-UK market intensifies p7
its staff, are saved. Royal Caribbean has intensified SECTORS.
competition in the ex-UK cruise Cruise p20
market by opting to base giant ship Business travel p22
Lucy Huxley Editor Independence of the Seas year- Air p24
round in the UK for the first time Letters p28
02 24.04.2009
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