Investors pull plug on Destinex.com venture

Investors pull plug on Destinex.com venture

Bennett puts dot com up for sale after failing to find backers

Public concern about booking over the Internet hits funding

Report by LISA JAMES

DESTINEX.COM chief executive Tony Bennett has been forced to put the company up for sale after failing to find a backer for the Internet travel site.

The former Going Places chairman launched plans for the e-commerce venture in the spring, naming a number of high-profile industry figures as members of his team.

But Bennett pulled out of the venture last week after talks with a major investor broke down.

He said:”The investor offered to put money in but not at a level I was happy with. People have become much more concerned about investing in the Internet in general and in particular on-line travel.

“When you talk to the venture capitalists, they just say there are so many people in travel.”

Bennett also admitted he had overestimated the public’s willingness to make complicated travel bookings over the Internet.

He said:”It’s now clear that sales of more complex travel transactions over the Internet will be a lot slower than people, including me, had anticipated nine months ago.

“People are willing to book point-to-point sales but that is not what Destinex.com was all about.

“There was no point in going in and simply offering competition with the likes of Expedia and ebookers,” he said.

“I am very disappointed because I really believe the concept will work.”

Bennett said he is currently in discussions with a major travel company to buy Destinex.com.

He said:”I am looking at selling some of the assets and passing on some of the people but I will not move with the business. Whether the Destinex.com name is kept is still under discussion.”

Bennett invested some of his own money in the e-commerce venture as did fellow Going Places directors Francesca Ecsery-Merrens and David Blackledge, who followed Bennett to the dot-com start-up.

Others in the original line-up included Eurostar executive director sales and distribution Adrian Watts. Going Places sales and operations director Jill Martin was also believed to be joining the business.

Rumours that Destinex.com was having problems were heightened three months ago when Watts abruptly announced he was to stay at Eurostar.

Soon after, Ecsery-Merrens quit to join rival ifyoutravel.com.

Bennett: overestimated the public’s willingness to book holidays on the Internet