in-depth Special report: Pontin’s
downfall according to Hannah Clipston, partner for hotels and leisure team at Thomas Eggar. “It’s easy for consumers to complain,” she said. “Pontin’s image has been plagued by Watchdogreviews and blogs on everything from the state of the camps to the staff.” Alan Bowen, legal advisor to the Association
Pontin’s postcards from the edge
Holiday camp operator Pontin’s has gone into administration, but does its failure dispel the myth of the growing popularity of the ‘staycation’ holiday? Sophie Griffiths reports
boiled in”. D
irty dilapidated accommodation blocks, staff that seemed at pains to be working there, and bacon served dripping in the water it had been
This could be the description of a 1960s prison block. In fact, it is one holidaymaker’s account of his stay in Pontin’s – one of Britain’s most iconic holiday brands.
“It was supposed to be the quintessential
staycation,” Dafydd Pugh, solicitor at Berrymans Lace Mawer, recalls of his weekend away with friends at the company’s Blackpool camp in May 2009. “We had gone away for three nights; after 24 hours we called the nearest four-star hotel to see if they could take us, which cost just £5 more per head. It was sad to see such a great British institution go, but it wasn’t even fun in a cliched sense, it was just tragic, and that was the problem.” Rumours are circulating that the beleaguered
holiday camp operator could be saved by Indian millionaire Bhanu Choudhrie, who is thought to
06 19.11.2010
be teaming up with Dubai’s royal family to offer £15 million for the business. It is a far cry from the £46 million which the company was sold for in 2008 when it was taken over by former Pontin’s Bluecoat Graham Parr. The fortunes of Pontin’s rivals paint a very
different picture. Last year, Butlins’ owner Bourne Leisure saw profits increase to £87.9 million, from £54.8 million in 2008. Another Bourne brand Haven Holidays this week announced record advance bookings for 2011.
The sad truth In contrast KPMG said for the eight months to the end of August, Pontin’s was trading at a pre-tax loss of £14.4 million. “The sad truth is that Pontin’s has seen a
drop off in occupancy levels, which ultimately caused it to run out of cash,” said Jane Moriarty, restructuring partner at KPMG, which is handling the administration. Bank Santander is believed to be owed around £40 million by Pontin’s. The internet was a major reason for its
of Atol Companies, agreed that poor publicity contributed to the failure of Pontin’s, but believed it was also down to the company’s lack of investment in both its camps and marketing. “Pontin’s has lost more than 50% of its value in the space of two years,” he said. “It appeared on Watchdog as sad and dejected, contrasted against Butlins with its new hotels in Bognor.” Andy Burnham, head of travel at MacIntyre Hudson, added: “The package holiday changed the dynamics. Some British resorts are so sad looking, they’ve not been invested in for gener- ations. Then you have firms such as Center Parcs offering much more modern facilities.” For Pugh, it was what customers could get for the same price that worked against the budget holiday camp. “It just hadn’t developed the product in accordance with customer expectation,” he said. “You can get a room at the Premier Inn or Travelodge for the same price a night, Pontin’s just doesn’t provide the same value for money.” However, Robert Saunderson, director at Barnes Travel agency, said he was surprised about Pontin’s collapse, as it had always been more supportive of his firm than its competitors. “We always sold more holidays for Pontin’s than Butlins or Haven, and it gave us more sup- port with its marketing budget. It just needed to push on with its investment programme to update the camps.”
Budget boom So what does the future hold for Pontin’s? KPMG remains confident that the company will continue and will remain “part of thousands of family memories in the years to come”. Bridge Leisure Parks was appointed on
Tuesday to manage the day-to-day operations of the firm’s five parks while it remains in administration. Meanwhile specialist consultant Maya will examine how the parks can be revamped to appeal to future investors. Moriarty insisted KPMG had received “a deluge of enquiries from potential buyers”. Saunderson is hopeful: “The demand is there. If the new owners invest in hotels, or change their accommodation, Pontin’s will survive,” he insists. “People want them. The budget holiday suits a lot of people, especially in the current climate. It would be sad to see them go.”
ttglive.com
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64