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Barrhead: OTAs are rejected due to poor service
Lee Hayhurst
lee.hayhurst@travelweekly.co.uk
Barrhead Travel claims quality retail locations are seeing a revival as customers in the digital age reject online travel agents due to customer service issues.
The Scottish agency’s optimistic
outlook for bricks and mortar stores was included in its 2015 full-year accounts posted on Companies House last week. Sharon Munro, Barrhead chief
executive, said “upmarket, quality” holiday bookings are made face- to-face “with people”, even if they are researched online. In her review of the business,
she said “good retail locations are again becoming the way forward, as there is a resurgence of customers wanting the security of dealing with a trusted brand”. Barrhead last year opened its
first store in England, a flagship property in Newcastle. Munro said: “The phone, visit
or click approach is working well and this is undoubtedly the way
Sharon Munro: ‘Good retail locations’
to retain clients and transact sustainable business. “Many travellers are now
rejecting online travel agents because of service issues.” Barrhead’s full-year trading
figures showed a leap in operating profit from £1.76 million to £3.03 million. They were announced earlier this month when it was revealed financial advisory firm BDO had been asked to seek investment to spur further growth. Gross sales value increased by
8% year on year to £266 million; commissions earned rocketed by 14% from £15.8 million to £18.1 million; and sales of its own tour operations rose by £3.5 million to £68 million. Barrhead’s gross profit margin
of £30.03 million was up 9% and the firm made 11.3% gross margin on total sales, a slight improvement on 2014. An increase in the cost of sales, which includes marketing, from £76.9 million to £92.4 million reflected increased revenue. Barrhead’s cash reserves
improved by £6.6 million to nearly £18 million.
Both agencies are in Dunmow high street
Dalton is not only indie in the village
Hollie-Rae Merrick
hollie@travelweekly.co.uk
Two rival travel agents have been at loggerheads this summer over a dispute about being the only independent in an Essex town.
The rift between Flitch Travel and Dalton Travel, which are located just 140 metres from each other on the same high street in Dunmow, began when the former complained to the Advertising Standards Authority (ASA) about an advert Dalton Travel placed in a local newspaper. In the ad, which ran in January,
Dalton Travel described itself as ‘Dunmow’s only specialist independent travel agent’. Last week the ASA upheld
Flitch Travel’s complaint, ruling that Dalton Travel’s claim had “not been substantiated and was misleading”. Dalton Travel, a member of The
Advantage Travel Partnership, had argued Flitch Travel, a Hays Independence Group consortium member, answered to the authority of Hays and could not be
considered “independent”. Dalton holds its own Atol, whereas Flitch is protected under Hays’ bonding. The ASA said there was no industry-standard definition of an independent. However, it stated: “We understood that the term was commonly used to mean ‘independent from major tour operators’ and considered that it would be understood as such by consumers.” It added: “Given our understanding, however, of the operating practices of the two organisations [Hays IG and Advantage], we did not consider that these differences in structure resulted in members having a significantly different degree of influence over the services they could offer to customers.” Following the verdict, Dalton
Travel owner Paul Bennett, who also owns Colchester Travel, Coggeshall Travel and Billericay Travel, said there were “two sides to a story” and he now wanted to focus on selling holidays. Neil Henderson of Flitch Travel declined to comment when contacted by Travel Weekly.
25 August 2016
travelweekly.co.uk 5 3 STORIES HOT
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