p10 WTM Nov13 11/11/09 18:20 Page 10
news conference report
ttglive.com
World Travel Market 2009
November 9-12■ ExCeL ■ London
TTG reporters bring you the week’s top stories
in the middle where you lack differentiation
from the UK’s biggest annual travel event
or have insufficient scale, to me, does not work.”
McCaig advised firms not to change their
strategies as a result of the recession, but to
Big online agents ‘to fail’
evaluate how they were setting about achieving it.
He told the audience of top industry bosses
that lastminute had responded to the economic
downturn in the UK at the end of last year by
escalating cost-cutting programmes and honing
Lee Hayhurst.
its product mix.
CASUALTIES are likely in the online travel agency “We adopted the mentality of working closely
sector in Europe due to the economic downturn, with suppliers,” he said.
the boss of lastminute.com has predicted. “We needed to find the sweet spot with UK
Ian McCaig (pictured), speaking at Monday’s consumers and that has been very deal-led.
WTM Captains of Industry lunch, said having “When people do spend it has to be something
19 large online agencies with turnovers of more special, it has to be something that’s intrinsically
than £100 million was “unsustainable” in the appealing and you have to catch them at that
present economic conditions. right moment.”
The online agent’s chief executive said compa- McCaig claimed lastminute was ahead in terms
nies had to be large and able to take advantage of revenue from where it was last year and also
of scale, such as lastminute, or small and niche, in terms of Ebitda (a measure of profitability),
and able to drive higher margins from differenti- although he did not reveal figures.
ated product. “Nor, at the other extreme, against those The retailer’s lifestyle products, such as
“If you are in the middle, you cannot compete companies that do bits and pieces of your theatre tickets, although not the highest revenue
with the economics of the big mass-market business model better than you ever do. part of the company, were up 40-50% year-
players,” said McCaig. “The recession accelerates that. Being caught on-year and were another growth area, he said.
BARBADOS. KENYA.
Minister urges UK to rethink APD hike
Tax is a ‘slap in the face’
KENYA’S tourism minister, Najib Mohamed
BARBADOS tourism minister Richard Sealy joined as US destinations much farther from the UK, Balala, has accused the UK government of
other Caribbean politicians in Westminster to would be resolved. delivering a “slap in the face” to his country in
lobby the UK government during WTM, as the Sealy said Caribbean politicians would press the way it has reformed Air Passenger Duty.
campaign against the new APD tax continued. for a deferring of a rise planned for November Balala said Kenya had cut its own taxes to
Sealy (pictured with Barbados Tourism boss next year. “There is a serious budget deficit encourage tourism by giving VAT exemptions and
Petra Roach) said he was hopeful an anomaly in this country [the UK] and naturally the waiving visa charges, but these measures had
with the new geographical banding, which sees government wants to look for ways to plug that been cancelled out by the UK’s increases in APD.
the Caribbean placed in the same bracket gap. I can only urge them to rethink,” he said. “It is difficult at the moment with the economy
“More and more Brits are travelling, more and suffering, and we are trying to stimulate tourism
more Brits want to travel and therefore choking with our own measures. But then the UK does
the industry is not the answer.” this and it is like a slap in the face for us,” he said.
Balala said Kenya visitor numbers from the UK
■ TTG’s Chris Gray won Best Travel were 17% down on 2007, its peak year, but 40%
Trade Feature of the Year for his up on last year when the country suffered from
article launching Fair Fares, our violence over a disputed election.
campaign for a fairer calculation The government was about to pass a tourism
of APD, at the Caribbean Tourism bill that would set out a 20-year plan to develop
Organisation’s Travel Writer the industry by improving infrastructure and
Awards presented at WTM policing, and increasing marketing, said Balala.
10 13.11.2009
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