NEWS TRAVEL WEEKLY BUSINESS CONTINUED FROM THE BACK
what options we have to go faster on our core strategy.” Thomas Cook separated its
airline and tour operations two years ago after combining the carriers into one in 2013. About 45% of seats are taken by the group’s tour operators. Fankhauser suggested a
sale would only proceed with guarantees on the future commitment of seats to the operator. He said: “The airline is built on the strong relationship of the tour operator and airline and that is going to stay in whatever scenario.” Fankhauser declined to give
further details, saying: “The review is at an early stage.” But it is likely a joint venture will be among the options examined. He said: “This is a logical
step. We always said we don’t need to own an airline. We have a great business, but as a holiday company we don’t need to own an airline as long as we have a strong commercial relationship with the airline.” The carrier’s airport slots are among its most-valuable assets. It has 400 slots at Frankfurt, more than 230 at Dusseldorf and 160 at Munich, as well as more than 350 at Manchester and 200-plus at Gatwick. Fankhauser said: “They
are all great airports. That makes our airline proposition
extremely valuable.” German travel trade leaders have called for compulsory insolvency insurance for airlines in the wake of the Germania collapse, which followed the failure of Air Berlin in late 2017 and Small Planet Airlines Germany last autumn. Germania operated 37
aircraft, carrying four million passengers a year from German regional airports to destinations around the Mediterranean. It employed 1,700 staff, most of whom were not paid in January.
UKinbound Annual Convention 2019: Members’ confidence upbeat
Edinburgh’s proposed tax ‘can only be a bad thing’
UK inbound industry leaders warned Edinburgh’s plan for a tax on tourists would add pressure on hotels and threaten visitor demand.
Edinburgh city council agreed
to push ahead with plans for a Transient Visitor Levy of £2 a night on tourists last week after the Scottish government announced a consultation on the levy ahead of tabling legislation to enable the tax. UKinbound chief executive Joss
Croft said: “We’re very concerned about the Transient Visitor Levy. Visitors to the UK are already some of the most highly taxed in the world, with APD and VAT at 20%. It can only be a bad thing.” He told the association’s annual
convention in Glasgow: “Taxing more when we need to offer a warm welcome is the last thing we need.” Croft told Travel Weekly: “The idea people will automatically choose [to visit] the UK is misguided.” UKinbound chairman James
Aitken agreed, saying: “When the country is mourning the death of the high street, is it wise to
Inbound suppliers show sharp rise in 2019 confidence
UKinbound reported a sharp rise in confidence among its members at the start of this year despite a fall in visitor numbers and bookings to Britain and uncertainty around Brexit. The association’s rolling Business Barometer of members’ bookings, revenue and confidence showed its sharpest rise in two years.
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travelweekly.co.uk14 February 2019
CROFT: ‘A tourism tax will impact the margin end not the luxury end’
put more pressure on hotels and guesthouses?” He also queried whether the levy would apply to Airbnb-type businesses, asking: “Will they have to comply?” Aitken warned: “A tourism tax
will impact on the margin end [of the hotel sector], not on the luxury end.” He added: “I’m sure councils all over Britain will wake up to it.” Edinburgh’s proposed levy
requires a change to the law in Scotland, which is expected to take about 18 months.
More than half of members
(57%) reported improved sales in the 12 months to November- December 2018, the highest figure since mid, and almost half (48%) improved revenue. hree out of five
reported feeling confident aout the next 12 months in January – up from 40% in September- ctoer and the highest figure since November 2017. Richard Bryan, managing direc-
tor of Qa Research which conducts the barometer, said members reported “a spate of forward bookings” at the end of last year.
BRYAN: ‘Spate of forward bookings’ at end of last year
The Scottish government and the Scottish National Party (SNP) which leads the administration previously opposed a tourism tax. However, it agreed in January to consult and then legislate in return for the support of the Green Party in passing a budget. dinburgh council confirmed
it plans a levy of £2 per visitor per night, up to a maximum of seven nights, on all forms of
accommodation except campsites. › Talk Back, page 19
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