p7 ITT June12 10/6/09 19:05 Page 7
ttglive.com
conference report news
ITT • June 8-10 • Dubai
STRATEGY.
TAKEOVER.
Kuoni on acquisition hunt
KUONI CHIEF executive Peter Hays ‘picks up Freedom mess’
Rothwell has said the company
is on the lookout for acquisi-
Lee Hayhurst.
“My staff took the abuse because they were
tions. HAYS TRAVEL staff unfairly bore the brunt of the bearer of bad tidings,” said Hays.
Although Rothwell had the anger of consumers who had been “totally “We should have been able to tell them that
appeared to rule out a bid for and absolutely” failed by financial protection the accommodation would be provided.”
Arcandor’s stake in Thomas following Freedom Direct Holidays’ collapse, the The deal Hays agreed with the Freedom
Cool at the ITT conference, he chain’s boss said. administrators did not include taking on
said Kuoni was “more likely to John Hays, managing director of Hays Travel, responsibility for its forward business nor being
acquire than be acquired”. which bought the Freedom name, websites and required to re-protect customers.
“Kuoni will remain inde- database, said the collapse symbolised all that “We became embroiled in problems that have
pendent. It is well funded and was wrong with industry regulation. beset the industry for years and is the responsi-
has a good balance sheet. We Speaking at the ITT conference, he said when bility of Abta, the CAA and credit card firms.”
are in a strong position.” he bought the company he did not expect to Hays said it was unacceptable that customers
Rothwell (pictured) said he was expecting have to deal with clients who had booked with should have no idea who is protecting them.
the operator’s UK trading to improve on April’s Freedom but were being told their holidays were He laid the blame for the mess squarely with
figures, when it was 12% down. not going ahead. the government and its regulator, the CAA, and
The long-haul specialist suffered a year-on-year But he said his staff found themselves being not travel firms looking to get around the rules.
2% drop in business in 2008, despite having the messenger, having to tell many angry clients
been impacted by currency fluctuations, that their bookings were not being honoured. ■ ‘Aito offers protection’: Letters, p23
Rothwell said.
But he admitted he did not expect bookings in
the lates period to recover all the lost ground of
earlier in the year.
He said that he expected Kuoni’s inhouse
distribution to grow “a little bit” from its current
50% but “not disproportionately”, and he saw
“good, knowledgeable travel agents as being an
essential part” of Kuoni’s distribution chain.
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