Continued from page 72


but there is everything to play for on services.” The services sector makes


up more than 80% of the UK economy and includes travel. Peter Foster, Europe editor


of The Daily Telegraph, warned Abta’s Travel Convention in October: “Johnson’s version of Brexit would introduce significant frictions between the UK and EU. It means a long and grinding process.” It threatens at least two new


Brexit ‘crises’ next year – in the run-up to July 1, the deadline for agreeing a transition extension, and December. If there is no extension and


no deal by December, Britain would leave without a trade deal – meaning trade barriers, quotas and tariffs under World Trade Organisation rules. Former British ambassador


to the EU Ivan Rogers warned last week: “The crisis likely to confront us is at Christmas 2020. Firms are only just waking up to the huge implications.” Industry associations have


issued their own ‘manifestos’. Abta called on the incoming government to prioritise a liberal immigration regime and a deal with the EU on posted workers, among other measures. The UKinbound association is seeking continued access to the EU single market and customs union and extension of the transition period. One Conservative post-


Brexit plan has already been revealed – a US-style Electronic Travel Authorisation visa-waiver system would be introduced for EU and Commonwealth visitors to the UK. Home secretary Priti Patel also announced last week: “We’ll introduce an Australian- style points-based immigration system after Brexit.”


On the Beach cites Cook as profits drop by 26%


Phil Davies


On the Beach blamed the collapse of Tomas Cook for a 26% fall in pre-tax profits to £19.4 million for the 12 months to September. The failure knocked more than


£7 million off the bottom line of the UK’s biggest online travel agent. Chief executive Simon Cooper


reported the company spent almost £26 million on refunds and organising alternative travel arrangements for customers for whom it had acted as an agent booking Thomas Cook holidays, with an additional £600,000 of exceptional costs on “managing the process and loss of monies held by Thomas Cook agents”. However, the company was able


to offset £18.5 million of the loss with a chargeback claim, and Cooper noted Cook’s failure created “an unprecedented opportunity in the medium term”. On the Beach recorded


£7.1 million in full-year revenue from tour operator Classic Collection,


Cooper: Firms like us should not have to pay the full APC


On the Beach chief executive Simon Cooper has called for the £2.50 Atol Protection Contribution on holiday bookings to be reduced for travel firms that use trust arrangements to protect customers’ money. Cooper issued the call last week


aſter revealing the failure of Tomas Cook wiped £7.7 million off the company’s full-year results. He


70 5 DECEMBER 2019


said: “Tere is a massive difference between people who operate like us and companies that don’t. “I don’t think it proportionate


to be made to pay the same Atol Protection Contribution [APC] as everyone else in the market.” Cooper suggested that if all


companies were forced to adopt trust arrangements, the hit on cashflow and tightened merchant terms would “squeeze many of them out of business”. On the Beach chief financial


officer Paul Meehan said the company had undertaken “a massive amount of work” in


Simon Cooper


advance of Tomas Cook’s failure. He said: “Our operational team


started on tens of thousands of bookings immediately and we were able to fix them faster than anyone else in the industry.”


travelweekly.co.uk


which it acquired in August 2018. Cooper said: “I’m pleased with the


group’s performance in what has been a difficult economic climate with the prolonged uncertainty regarding Brexit and the related currency impacts. “Following the failure of Thomas


Cook, our business responded exceptionally to ensure customers were rebooked or refunded in the shortest possible time while maintaining high-quality customer care.” He added: “We made significant


progress against our strategic objectives in the year with the launch of Classic Package Holidays, the expansion of our long-haul offering


and the international segment delivering strong second-half revenue growth and a full-year break-even performance for the first time.” Cooper argued: “The failure of


Thomas Cook has led to a material shift in market dynamics as it had a 20% share of beach holiday passengers and approximately 20% of seat capacity to beach destinations. “Search demand has been strong


throughout the period following the failure, albeit the loss of seat capacity has led to a significant increase in flight pricing, particularly for winter 2019-20 departures and for travel to eastern Mediterranean destinations.”


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