gain from UK slump, says Thomas Cook boss
s out of UK
y a quarter’
Fontenla-Novoa forecast
this would result in a 6%-7%
rise in average holiday prices
next year, despite pressure in
some quarters for price cuts.
Thomas Cook and rival TUI
Travel dominate the European
travel industry following the
mergers of Thomas Cook with
MyTravel and TUI Travel with
First Choice Holidays last year
– when both groups were listed
on the London Stock Exchange.
Fontenla-Novoa addressed
a Captains of Industry lunch
at World Travel Market on
Monday, refusing to comment
on current trading as Thomas
Cook prepares to release halfyear
results.
However, he said: “The UK
industry has taken 25% of
capacity out of the market in
two years, with the XL Leisure
Group collapse removing
another tranche of capacity.
Next summer there will be
12% less [than this summer].”
Fontenla-Novoa described
consumer confi dence in the
UK as lower than elsewhere in
www.travelweekly.co.uk
To watch video
footage of Michael
East interviewing
Manny Fontenla-
Novoa at WTM go to
www.travelweekly.
co.uk/wtm2008
“You need a
high-street
presence if you
want early sales of
brochure holidays”
Europe and said the capacity
cuts had been timely, adding:
“The last four or fi ve weeks
have been pretty unusual.”
He called on hoteliers at
WTM to reduce room prices
now rather than wait until
February or March to act.
Spain has suffered most
from rising costs resulting
from the value of the euro
against the pound, he said,
adding: “There has been a big
shift into Turkey and Egypt [by
holidaymakers].”
Fontenla-Novoa reiterated
his commitment to traditional
high-street travel agencies,
saying: “You need a highstreet
presence if you want
early sales of brochure holidays.
The high street will not
shrink by much.”
Virgin launches
own bed bank
Virgin Holidays is planning to
launch Virgin Beds in August
next year. The bed bank will
specialise in Caribbean stock.
Sales and operations director
Stewart Baird said the company
had decided to stay out of the
short-haul bed bank market.
“Short haul is too overcrowded
at the moment and
there is an opportunity for
accommodation-only in the
long-haul market,” he said.
Meanwhile, Virgin Holidays
managing director Amanda
Wills said cruise sales had
doubled since the operator
bought Swindon-based call
Scolari goes nuts for Brazil
Chelsea Football Club manager Luiz Felipe
Scolari joined World Travel and Tourism
Council leaders as they unveiled the host city
for the WTTC’s 2009 summit on World Travel
Market’s opening day.
The council’s Global Travel and Tourism
Summit will be held in the Brazilian resort of
Florianopolis on May 15-16 2009.
For news, TV coverage from TW TV and pictures from World Travel Market
go to www.travelweekly.co.uk/wtm2008
Maureen Miaowing suitcase
sparks alarm at airport: page 28
centre and online cruise
agency Fast Track Holidays in
October last year. Fast Track
has now been rebranded
Virgin Holidays Cruises.
She also reported that
the company would grow
its “phenomenally successful”
in-store outlets in Debenhams
and Tesco from eight to 20 by
mid-2009.
The company’s revenue has
increased 15% year on year
and pre-tax profi t increased
from £43 million to £72
million. “Virgin has cushioned
itself well for the economic
downturn,” added Wills.
IN BRIEF
TRAVEL 2 ANNOUNCES
STRUCTURAL REVIEW
Travel 2 has confi rmed it is
conducting a structural
review across the business.
The operator has entered a
consultation period with staff
at its Glasgow reservations
centre, which employs 300
people. A statement said the
changes would address
duplicate channels and
ensure that Stella UK has a
“sustainable, robust and
correctly sized structure”.
TRITON CONSIDERS
SPANISH VENUES
Triton Travel Group is
considering Malaga or
PortAventura in Spain for
the superconsortium’s 2009
conference. Chairman Steven
Freudmann said the two
locations were the current
frontrunners. A decision is
due to be made in the next
few weeks.
BED BANKS MAY FACE
HUGE TAX BILLS
The Inland Revenue could
force bed banks acting as
agents to foot VAT bills that
rivals with principal status
already pay, said youtravel.
com chief executive John
Kent. The Inland Revenue is
reviewing the current set up,
and could demand payments
going back as far as fi ve years
from bed banks.
ABTA ADS TO PUSH
AGENT BOOKINGS
ABTA is planning a consumer
campaign to drive bookings
through members early next
year. The board is fi nalising
plans for the campaign,
which will promote the “book
with confi dence” message
and highlight the fi nancial
protection available when
booking with an agent.
HOON WANTS THIRD
HEATHROW RUNWAY
Transport secretary Geoff
Hoon insisted the expansion
of Heathrow should go
ahead, despite a backlash
from backbench Labour
MPs at a House of Commons
debate this week. Hoon said
a decision should be taken
soon to end the “period of
uncertainty” for consumers
and those living near
the airport.
November 14 2008 | Travel Weekly | 3
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