NEWS TRAVEL WEEKLY BUSINESS CONTINUED FROM THE BACK


Ditching charter flights led to it cutting its number of services to Greece from 12 to just three. And when it spotted signs that the market to Turkey was suffering it axed its more seasonal package route to Bodrum. Gary Anslow, Monarch Group sales director, said: “Being scheduled, one of the key drivers is operating destinations that are year-round. It suits the airline model better.” As a result Monarch has


routes to Tel Aviv, Madrid and Lisbon catering for the sun and beach as well as the city-break, visiting friends and family, and corporate markets. “The airline is always working


to understand its most effective route network,” said Anslow. “We are operating 32 aircraft this summer. Where we put those is always under review.” The short-haul winter-sun


market has been hit in recent years by problems in Egypt and Tunisia. Monarch is on sale for Egypt this winter but, along with other carriers, is awaiting government advice about resuming operations to Sharm el Sheikh.


Another change the industry


is seeing is a shift away from traditional hotel contracting to yield managing through technological channel managers, particularly this year in Spain and Portugal, as hotels fill up. Healey said channel managers, like Dingus in Spain, are becoming more important to deal with to get availability, particularly at the last minute. “Hotels are moving to channel managers as their primary distribution. If you want best room availability you have to have a relationship with these channel managers,” said Healey. “Hotels see this route to market as getting them better revenue. It’s not about pricing, it’s about availability. Contractors are going out the window.”


ITT Conference 2016: Some of the 300 delegates who attended the


Midcounties to set up a business travel division


Midcounties Co-operative Travel is to launch a business travel operation by the end of the year.


Group general manager Alistair


Rowland said this would be the fourth arm in the group’s business, which currently operates shops, a consortium business and a travel agency homeworking division. Midcounties is working with a partner to set up the new division, which has not yet been named. It will offer business travel


through Midcounties Personal Travel Agents initially before being rolled out across the group. Rowland said: “A significant number of PTAs have access to small businesses who want them to manage their personal travel as well. This will be an entirely new operation for us.” Rowland expects the business


travel operation to bring in £10 million in revenue in its first year after launch in October. Midcounties is also poised to


create a new offer for consortium agents who require funding or


Tui and Monarch voice concern over FCO advice plan


Any changes to Foreign Office (FCO) advice must ensure there is absolute clarity for consumers, travel firms said at ITT. The FCO is due to reveal the


results of a review on security advice and could add a new level highlighting risks to destinations not subject to a travel warning. Abta has raised concerns about this and Tui UK and Ireland


70 travelweekly.co.uk 16 June 2016 ROWLAND: ‘This will be an entirely new operation for us’


“Many PTAs serve small businesses who want them to manage their personal travel as well”


support with a start-up model and want to operate as a co-operative or mutual. The move is part of a wider initiative announced at the group’s consortium conference last year. Rowland revealed Midcounties’


revenues for the year to April were up 5% year on year to £375


managing director Nick Longman said at ITT the firm is opposed to the move. Speaking at ITT, Longman said:


“It’s a really positive thing that the FCO is consulting. “I do not agree with its proposal


to move to a four-tier [advisory] system. It would be confusing.” Tui, which faced criticism of the


advice it gave customers from the families of those killed in Tunisia last year, is now giving customers “explicit messages”, said Longman. “We want to make it absolutely


transparent when people choose a destination, and after they have chosen that destination,” he said.


LONGMAN: New tier ‘confusing’


Gary Anslow, Monarch Group sales director, said: “The FCO gives absolute clarity to consumers and to us as operators. Anything that waters down that clarity for consumers is not a good move.”


million, with sales in 2016 up 8%. He said the group’s shops were


having their “best-ever year”, while service levels were at an all-time high with its ‘net promoter score’ currently at 95%. The group recently launched


its own dynamic tour operation, Co-op Holidays, following the launch of its Co-operative Rooms bed bank, which now accounts for one in two accommodation sales. A consumer Co-op Holidays


website along with a City Breaks range will be unveiled this year.


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