Cox and Kings' emergence as a suitor for Holidaybreak last week
was the latest in a series of big ticket mergers in the travel
sector over the last few months. Tui set the ball rolling in May;
acquiring six of Magic Life's operating companies which manage
holiday clubs in Turkey, Tunisia, Egypt, Greece and Spain. Not to
be beaten, rival Thomas Cook's retail merger with Co-op Travel has
been given approval, creating a group of more than 1,200 shops,
which will be the UK's largest travel agent and the second biggest
in foreign exchange.
For a travel industry held in a noose by the tightening purse
strings of UK consumers, the on going challenge to protect margins
has created a land grabbing mentality amongst operators. Increased
size means increased negotiating power over prices with airlines,
hotels and insurance companies and as access to organic growth
remains extremely difficult, the larger travel groups are driving
consolidation throughout the market place.
Innovation and technology will also play a key role in the shape
of the future travel industry. In a recent survey of more than 100
senior travel industry figures, 70% ranked TripAdvisor as the
source of information which was most likely to influence a
consumers' choice of hotel. Social media and smart applications
have nurtured a new breed of savvy, empowered consumers, and to
succeed in this market place, companies must embrace the social
revolution. Online travel brands including Booking.com and Expedia
recently agreed a deal to sell holidays directly through Facebook
app Gekko. Avis Rent-a-Car became the first company to offer a car
rental application for Microsoft Windows Phone 7 mobile devices,
and Sabre Travel users have the ability to check their flights,
view and change seats and post to social media sites using Sabre
Virtually There Mobile.
Whilst confidence in the travel industry remains cautious,
owner-managers in the travel industry should be ready to take
advantage of the opportunities in the market place. As with any
changing market, adaptability will be the key to survival.
For more information and tips on how to ensure your
business is prepared to take advantage of opportunities in the
market place, please contact James Edge on 0161 819 2500 or email
jedge@ford-campbell.co.uk