NEWS — HOT STORIES 4
Online agents tipped to be most at risk of failure in wake of two operator collapses
Lee Hayhurst
The failure of two small tour operators in the past few days hasn’t yet raised alarm bells in the industry, but there are concerns about the impact of this summer’s tough trading. On Monday it was confirmed Turkey and northern
Cyprus operator Lorenz Voyager Travel had joined Students Adventures on the late-summer casualty list. However, ahead of the autumn, the
traditional time for failures, Travel Weekly has been told there are fears of a flurry of collapses, with online agents said to be most at risk. Privately, industry regulator the
CAA was said to have expressed concerns, although a spokesman declined to make any comment on trading prospects for Atol-holders. Alan Bowen, legal adviser to the Association of Atol Companies, said OTAs had probably had a difficult summer because the crucial lates market never materialised. He said this would have had an impact on
HOT SHOTS: REASONS FOR READING THIS WEEK
1
2 3
Win a FAM TRIP TO QATAR with Qatar Tourism Authority, page 30
Win a KINDLE with Travel Uni, page 50
Win ONE OF FIVE TEAM THRILL PRIZES with Virgin Holidays, page 42
5
Kuoni opens 23rd ‘evolution store’ in Gateshead Hollie-Rae Merrick
Kuoni will open its 23rd standalone store this weekend and with two more locations identified should hit 25 stores by the end of the year. The operator’s latest ‘evolution store’
will start trading in Gateshead’s Intu Metrocentre on Saturday, with Kuoni promising something “different to anything else around”. The Swiss firm is pursuing a three-
pronged high-street retail strategy in the UK with John Lewis and Waitrose concessions and dual-branded partnerships with independent agents. Although managing director Derek Jones
wouldn’t reveal where the next two stores would be, he said deals were close to being finalised. In keeping with the strategy that “no two Kuoni
6 •
travelweekly.co.uk — 4 September 2014
stores are the same”, Jones said the new Gateshead shop would feel more like a lounge and future stores would evolve further. The store, staffed by a team of six, will feature a ‘world window’ – an installation of 15 TV screens that display videos, social media streams and photos. “It won’t have the desks and chairs
layout that has been commonplace in agencies for years,” said Jones. “Instead it will have more of a lounge feel, and our staff will be able to sit alongside customers. “Our stores are all an evolution; we want to create a different atmosphere, and the world window helps to do that.”
Kuoni’s presence in John Lewis stores is set to rise to 10 concessions in coming months with openings in Cribbs Causeway, near Bristol, and Norwich.
cashflows, particularly as competition has pushed up the costs of marketing online, whether on Google or other deal-publishing platforms. “Mainstream operators were selling packages at
ludicrous prices,” said Bowen. “Obviously, if you can get a package for £150 why
“There was lots of excess capacity – and that’s not good for OTAs”
would you go to the stress and strain of putting it together yourself? “There was a lot of excess capacity and that’s not good for OTAs.” The CAA is currently consulting on stricter
Bowen: ‘Packages at ludicrous prices’
regulations for smaller firms turning over less than £5 million a year – the vast majority of Abta and Aito members with Atols. Observers say this indicates the degree to which the CAA is determined to prevent these firms posing the greatest risk to the Atol financial protection scheme. Abta has branded the plans “over the top”, but Bowen said: “The CAA is probably right to say we need to know more information about these people.” ❯ Two travel firms fail, page 87
MORE HOT STORIES
“It will
have more of a lounge feel
where staff will sit alongside customers”
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 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96