Analysis: Jet2 and Travel Republic is a tale of two businesses

Two near simultaneous announcements last week by Jet2 and dnata Travel Group appeared to mark a significant moment in the evolution of the UK outbound travel sector.

Jet2’s confirmation that it will open a base at Gatwick for summer 2026 was no surprise. The move had been on the cards since the airline opened a base at Stansted in March 2017. The timing was dictated by sufficient slots at Gatwick becoming available, but successive years of record bookings will have made the decision a simple one.

Similarly, dnata’s announcement that Travel Republic and Netflights are to close was no real surprise. 

More: Travel Republic – the death of dynamic packaging?

The Emirates subsidiary had confirmed it was reviewing the UK businesses, “exploring strategic options”, in early September. Clearly, it could not find a buyer.

At one time, Travel Republic had appeared to represent the sector’s future. When dnata acquired the online agent in December 2011, Travel Republic boasted more than two million customers a year.

Dnata hailed the purchase as one that would allow it to grow online. Travel Republic’s then managing director, Kane Pirie, claimed the deal “will help accelerate our growth”.

It did not pan out like that. Travel Republic’s growth since its 2003 launch had been based on selling dynamically packaged holidays – bookings which were then unregulated. The CAA attempted to close the loophole by prosecuting Travel Republic and Pirie – and failed.

Then it and the Department for Transport devised the sticking-plaster solution of the so-called Flight-Plus Atol to cover dynamic packages. Subsequently, the European Commission stepped in with a new definition of a package in its Package Travel Directive of 2016 and the UK incorporated this into the Package Travel Regulations of 2018.

Travel Republic failed to adjust to the new regulatory regime in the way loveholidays and On the Beach did. In the meantime, Emirates grew and grew its sales through agents. Travel Republic, founded on selling short-haul beach holidays, must have seemed increasingly less relevant.

The OTA still held an Atol for 555,000 in 2019. But post-pandemic this was cut to 368,000, then to 103,000 this April and just 46,000 this October.

Meanwhile, regional carrier Jet2. com had founded tour operator Jet2holidays in 2007. By 2015, it was carrying half the customers Travel Republic had in 2011. But 14 years on from dnata’s acquisition of Travel Republic, Jet2holidays is by some margin the biggest Atol holder and overall sales of package holidays – including through trade intermediaries – are at record levels.

The Emirates Group reported record half-year results to September for the fourth consecutive year, with dnata revenue surpassing $3 billion for the first time but growth in its travel division lagging the group’s.

Emirates increased services in the UK in October, adding six flights a week at Heathrow, and will operate 146 UK flights a week from February. Clearly, Travel Republic and Netflights’ contribution to filling these has been deemed insufficient.