Accommodation-only specialist Medlife Hotels is to move into the longhaul market following a £4 million investment by the XL Leisure Group.
XL Leisure Group, which owns Excel Airways Group as well as operators including Kosmar Holidays and Aspire Holidays in the UK, has become a majority shareholder in the online accommodation-only provider.
Medlife was set up in July this year by the InterArgo Group, which also owns Argo Holidays and Jetlife. InterArgo remains a substantial shareholder in the business.
Argo Holidays director of marketing and sales Kathryn Beadle said Medlife would offer accommodation in Portugal and North Africa within the next year followed by Dubai and Asia, and finally the Caribbean and Florida.
The expansion will be aided by contracts already made by sister company Jetlife.
She said: “The thing that made XL such an ideal partner for us is their many mainstream destinations. They fly to the Caribbean and that will open up many destinations for us which we can easily work with as we already have the contacts and contracts through Jetlife.”
Beadle added this is just one area of growth for Medlife, which currently features Greece, Cyprus, Egypt, the Canaries and Spain, with transfers to be sold on the site before the end of the year.
Early next year excursions will also be added to the trade-only site, www.medlifehotels.com. A new consumer website will be created in the new year for holidaymakers to look at all the properties offered. But it will not feature prices – allowing agents to add their own mark-ups when the accommodation is sold without having to compete with different online prices.
Agents will be informed about the changes through training and educations, she added.
Beadle also expects Excel Airways’ portfolio to expand, which will help Medlife grow into new destinations. “There’s lots of areas they’re not looking at,” she said.
XL Leisure Group chief executive Phil Wyatt said expansion plans are under way with both the Caribbean and India being considered.
The investment allows XL to gain access to Medlife’s bedstock and grow its flight programme.
Beadle, who revealed plans for Medlife’s expansion at the Argo Holidays Achievement Awards Dinner during World Travel Market this week, added that Argo’s summer sales had finished 10% up and Jetlife 85% up.
Argo’s summer 2007 bookings are already 25% up year on year, with an average selling price of £800 per person. She said: “The top end of the market is much more resilient than the low end which books later and is much more susceptible to other factors.”