International Hub
Overlooked but on the up
Travel wholesaling is a sector that often falls under the radar, but that’s changing fast, says Gary Noakes
I
t has been a busy time in the wholesale sector in the past year or so with some major deals cementing the hold of the big two players in the market, which is one that also boasts a thriving number of independent brands and recent entrants.
Two giants, Palma-based Hotelbeds (TP400) and Australia’s Webjet, head this sector. Below them are a host of other major players in a league ripe for consolidation – one that is attracting interest from outside investors as well as within.
Proof of this came in 2016, when market leader Hotelbeds was acquired from Tui Group for €1.2 billion by private equity firm Cinven and the Canada Pension Plan Investment Board. The deal provided funds for acquisitions, with Tourico Holidays bought in June 2017 and GTA, its accommodation, transfers, tours and activities arm, in October last year. Hotelbeds now boasts annual sales of 47 million room nights, claiming to be the global leading bed bank and number one cruise handler worldwide.
Hotelbeds is “more than five times our size”, according to Nigel Horne, chief executive, Europe, of Webjet’s B2B brand WebBeds (TP500). This admission comes despite Webjet’s £200 million purchase of JacTravel in September 2017, which added an aggregated 170,000 hotels plus another 17,000 directly contracted. The pivotal deal cemented WebBeds into the second place B2B slot globally, but there is still clear water between the two giants. “Unless there is some major acquisition, we don’t see us getting close any time soon, but equally there is a gap between us and number three. We intend to make
60 07.11.2018 Hotelbeds alone sells about 47 million room nights a year
WTM London agenda
Nigel Horne, WebBeds
Tom Jenkins, European Tourism Association
Wholesalers will fi nd plenty of buyers to deal with at WTM London. The sector is positioned within the International Hub stands and among those will be that of the European Tourism Association (Etoa) (TP600). Etoa will be hosting more than 250 tour operators and intermediaries, including 130 Chinese buyers. To underline the importance of this market, Etoa will have a stand in International Hub on behalf of the EU, promoting European tourism to the Chinese trade. Etoa chief executive Tom Jenkins says: “WTM London provides exhibitors with an amazing opportunity to fi nd business they don’t necessarily know exists.” With WebBeds only having set up in 2013 and Travellanda in 2010, there might be quite a few companies doing business that are unfamiliar to visitors – but with the wholesale sector’s booming growth rate and increasingly diverse interests, that may not be the case for long.
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