p20 Columnist Nov13 10/11/09 18:12 Page 20
news comment
ttglive.com
Chris Lee Barclays Commercial
“Many businesses have used
the difficult conditions to
pay much-needed attention
to their cost structures”
J
ust as I have got used to 2009, the unlikely to go down well with directors and
planning cycle for 2010 is upon us. On shareholders, so what are some more positive
the face of it, target-setting for next year signs that look possible to build on in 2010?
showing decent levels of growth seems a Firstly, the travel market is renowned for its
bit difficult. Passenger numbers for the majority “bounce-backability” and the positive attitude
of our larger customers have been down by 15% of its people. This year’s Travel Convention saw
or more. The booking cycle continues to get later over 1,000 attendees, more than in 2008.
every year, meaning travel firms have lower Both the TTG Travel Awards and the British
credit balances for a shorter period of time. Travel Awards were attended by over 900 peo-
The interest rates payable from financial ple each, the ITT Conference was again sold out
institutions are smaller than in the past, and a and WTM has been very well attended.
combination of these factors means interest Although the increases in APD and inconsis-
income earned on deposits goes less far in tencies in consumer protection have made life
contributing to profits or offsetting losses. difficult, at least Tui’s Peter Long was last
The bonding market has dramatically week given the opportunity to hold talks at
reduced and for those that need one, Westminster to stress industry concerns.
getting a bond is pretty hard. Many businesses have used the difficult
A couple of multi-hundred-million- conditions to pay much-needed attention to
pound turnover travel businesses their cost structures and a considerable
have recently posted large losses on number are now leaner and more efficient.
forex after not implementing a There are signs of the start of an increase
thorough hedging programme. in activity, such as Travelzest
Add to this developments in the successfully raising new equity,
credit card market, where some major Southall Travel and Hoseasons
banks have sold or are looking to sell all seeing good growth, and a num-
or parts of their credit card businesses. ber of my customers actively
The introduction of payment card industry contemplating acquisitions.
security system has also caused some firms to Many businesses have now
spend time improving their procedures, and de- adopted new and more flexible
ferred settlement and/or cash cover for business models with lower fixed
acquiring limits is quite prevalent. costs or commitments, and are ready
No wonder levels of mergers and acquisi- to adapt quickly.
tions activity have been well down on previous On balance then plenty of challenges, but
years. The majority of forecasts over the next let’s hope the green shoots grow larger over
12 months foresee no – or at the most minimal the coming months.
– growth in travel, so perhaps a transformation
in fortunes is not just around the corner.
However, downbeat plans for 2010 are Chris Lee, head of travel, Barclays Commercial
20 13.11.2009
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