NEWS annual forum. Juliet Dennis, Ella Sagar and Andrew McQuarrie report from Google in London


Private equity’s interest in travel ‘to remain subdued’


Panellists field a question from the audience


L Anna Sawbridge


– are set to be made under the Retained EU Law Act, which expires that month. Kolatsis said the scope of the proposed


Joanna Kolatsis


reform would be “narrow”, adding: “I think they’ve pretty much decided what’s going to come out – it’s just a case of [confirming] the wording.” Chris Photi, head of travel and leisure


at White Hart Associates, said he also expected reform to be introduced in 2026, but noted staff at the Department for Transport who had been working on the project had moved on. “The continuity around the consultation has gone,” he said.


eading industry accountant Chris Photi forecast a continuing slowdown of merger and acquisition


(M&A) activity involving private equity firms amid current economic and geopolitical uncertainties. Photi, head of travel and leisure at


White Hart Associates, said general M&A momentum had been strong this year, but private equity deals had been infrequent. “There has certainly been


a slowdown in private equity transactions,” he said, going on to predict the trend would continue. “Private equity companies hate


uncertainty, and in 2025 there has been uncertainty all around us – principally because of the two governments on either side of the pond.” Challenging factors have included


“a lot more last-minute bookings”, as well as inflation, a rising tax burden and currency volatility. Major deals increasingly required


Chris Photi


of when. You’re not going to bring them to market now with the uncertainty that’s prevailing, because the corresponding private equity that is most likely to buy your business is not going to pay top dollar and might not transact because of the uncertainty.” Travel Trade Consultancy director


greater levels of due diligence, Photi said, including an analysis of forward bookings. Citing recent “volatile booking patterns”, he added: “If forward bookings are not strong, that causes hesitancy on the part of private equity firms.” Greater M&A activity involving


private equity firms would eventually take place, Photi said, but outlining a timeline was difficult. He said: “Somewhere along the


line, there is going to be plenty of M&A activity when they bring those to the market – it’s just a question


Martin Alcock agreed smaller transactions had been frequent this year, but larger deals less common. He said: “The larger private equity-


backed businesses have definitely been a challenge, but there are still a lot of smaller SMEs who have a niche business that is attractive if you’re in that sort of market.” Buyers “still want” businesses


with Ebitda [earnings before interest, taxes, depreciation and amortisation] of “£1 million to £5 million”, he added, noting: “That’s very different to the £20 million to £50 million Ebitda [businesses], which have been a bit more of a challenge.”


Dnata chief says Travelbag ‘unlikely to become full retailer’


Dnata Travel Group’s UK chief said the future of Travelbag is most likely to remain as “a distribution channel” rather than a full-service retailer. The company currently has


eight shops, with three added in the last year – in Marlow, Harpenden and Cobham – and Lesley Rollo said earlier this year the organisation had a list of potential future locations which would be revisited at the end of 2025. Travelbag, together with three


sister brands, is subject to a possible change in ownership following a move by dnata Travel Group to “explore strategic options” for its


travelweekly.co.uk


four UK-based leisure brands. Asked about the expansion


plans at the Future of Travel Conference, Rollo said: “What we’re trying to do with Travelbag as part of the whole review of all our brands is decide what we really are.” Rollo added:


tailor-made long-haul tour operator that happens to have some distribution branches that complement it.” Rollo confirmed


that currently Travelbag “does not really sell” any other products aside from dnata brands, adding: “At the


Lesley Rollo


“We have delved deep into the business, and it is a very successful


moment, Travelbag will not become a full-service retailer. It


is a distribution channel that enhances the other channels.”


25 SEPTEMBER 2025 13


PICTURES: Alex Maguire Photography


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