PICTURE: ISTOCK
MARKET INTELLIGENCE
A round-
up of this
week’s
top news
for those
driving
the
business
of travel
Here you will fi nd the best
of our coverage, focusing
on business strategy and
market intelligence for
the travel sector, including
regular commentary
from our respected team
of journalists, and analysis
and news from our
sister title Travolution.
Kevin May,
editor,
Travolution
Ian Taylor,
executive
editor,
TWgroup
Juliet
Dennis,
chief
reporter,
TWgroup
supports Market
Intelligence
DialAFlight
takes action
over comment
Travel website DialAFlight
is in talks with TripAdvisor
regarding a legal settlement
for an alleged libellous
comment that appeared on
the review giant’s subsidiary
HolidayWatchdog.
The move came within
days of initiating a bevy
of defamation lawsuits
in the UK and Germany
against review sites. Peter
Stephens managing director
of DialAFlight parent
company Lotus Group
said the company fi led
defamation actions against
Microsoft-owned shopping
site Ciao in Germany, as
well as consumer forum
Grumbletext and Darren
Cronian of the Travel Rants
Blog in the UK.
Lotus was in the process of
issuing proceedings against
HolidayWatchdog when it
promised to take the pages
off immediately. Stephens
said Lotus Group was in
talks with a TripAdvisor
lawyer in the US about costs
and damages. TripAdvisor
spokesman Brooke Ferencsik
said: “We do not comment
on legal matters.”
Youtravel
names new
chairman
Bed bank youtravel.com has
appointed Niels Andersen
as non-executive chairman
to expand the business
internationally. Andersen,
who has replaced Nigel
Jenkins, has worked for
management consultancy
McKinsey and as fi nance
or executive director for a
number of multi-national
corporations outside the
travel industry.
His experience includes
running a business
transformation programme
and introducing a new
accounting system at the
BBC, where he was head
of group fi nance, and at
Sainsbury’s where he was
programme director.
Group managing director
Graham Nichols said:
“He has a lot of experience
of improving company
performance. We have
got plenty of people who
know about travel, but
the knowledge of how you
transform our international
business is critical.”
International business
was less than 10% of total
turnover a year ago, and is
targeted to reach 15%-20%
of turnover this year. “Our
three-year plan would be
for signifi cantly more than
that,” said Nichols.
Rewe could
take share of
Thomas Cook
A takeover of Thomas Cook
by German tour operator
and retailer Rewe is the
most likely outcome of the
uncertainty about the group’s
ownership, according to a
leading UK analyst KBC
Peel Hunt.
German retailer Arcandor,
which owns almost 53%
of Thomas Cook, entered
bankruptcy protection in
June, and is working on
a restructuring plan to
be unveiled in August
or September.
Arcandor chief executive
Karl-Gerhard Eick insisted
this week he would seek to
retain control of Thomas
Cook, but admitted to
the Financial Times: “The
decision is out of my hands.”
Thomas Cook’s share
price has fallen since
Arcandor went into
bankruptcy, suggesting
investors anticipate a cutprice
sale. However, leisure
analyst Nick Batram of City
fi rm KBC Peel Hunt said:
“The longer the process
drags on, the longer it gives
Rewe to make a bid.”
Rewe has already declared
an interest in Thomas Cook,
which is listed on the London
Stock Exchange. But it has
been suggested Rewe, which
is privately owned, would
struggle to fi nance a deal
amid the current squeeze
on fi nancing.
More business
news stories and
market intelligence at
www.travolution.co.uk
IT’S ALL A
REBRAND
TUI Travel-owned
Travelmood shops
are undergoing a
revamp to make
them more like
modern retailers
than traditional
agencies. JULIET
DENNIS reports
The review of TUI Travel
UK’s long-haul specialist
brands, which sees
Austravel shops rebranded
Travelmood, will create
10 contemporary agencies
in contrast with the group’s
traditional Thomson and
First Choice shops.
TUI Travel UK specialist
long-haul division managing
director Clare Tobin said:
“It will be a radical change
for the shops: it will not be a
traditional travel agency;
it will have a diff erent feel
and culture. Shops are also
used as virtual call centres.”
Tobin hinted the that
changes, from September,
could mean the end of
window cards. “Make-up
retailer MAC doesn’t have
sales signs in the window.
We are cluttered by sale
signs on the high street.”
The Travelmood logo
will be evolved, while
shop staff will have more
pre-booked appointments,
and a broader range of
product will be sold. One
of the biggest changes
will be selling TUI Travel’s
activity operators through
Travelmood shops.
An increased range of
TUI Travel-owned operators
such as The Imaginative
Traveller and Exodus will be
sold alongside product from
sister companies Austravel
and Hayes and Jarvis, such
as the Maldives and South
Africa. Other destinations,
such as Brazil and Costa
Rica, just launched by Hayes
and Jarvis, will be sold, as
well as cruises.
The destinations will
be sold as Travelmood
product, with contracting
likely to be integrated.
Some activity brands are
co-branded, and this is
likely to be rolled out across
other brands in the future.
The move will allow
Travelmood to introduce
new destinations, create
contracting effi ciencies and
boost revenues, Tobin said.
Travelmood makes up 20%
of the specialist division’s
long-haul revenues, with
12 | Travel Weekly | July 3 2009 www.travelweekly.co.uk
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