AIRTOURS faces a bleak future according to
predictions made at last week’s Pan-European Leisure Travel Industry
conference.
Leisure analyst Andrew Monk accused the
travel giant of weak management under group chief executive Tim Byrne, and
criticised its huge debts and lack of understanding of the specialist market.
Thomson and Thomas Cook also received
similar batterings at the conference, organised by Access and held at London’s
Café Royal.
Monk said: “Airtours was the biggest
winner of the last 15 years but its management is no longer flavour of the
month with the City.
“Some of the major companies have
destroyed specialist businesses by chucking them in with their mainstream
businesses. You have to handle specialists with care.”
Speaking from the audience Airtours UKLG
chief executive Richard Carrick called Monk’s criticism “outrageous”.
“We have just declared record profits and
all my specialist businesses have made money and will make even more next
year,” he said.
Monk’s predictions suggest a reversal in
fortunes for the big players of recent years who have capitalised on the mass
market, with operators such as First Choice, Kuoni, the newly-merged Bridge The
World/Travelbag group and the low-cost carriers emerging long-term winners.
About 14 million UK passengers go on
mass-market holidays every year, compared to 7-8 million on specialist
holidays, but margins made on the latter are much higher.
Monk, a broker specialising in First
Choice with bank ABN Amro, added: “I believe the future will be different. The
new game for the next 15 years is the specialist market and consolidation of
it.
“It will include low-cost carriers, which
I believe will become part of the holiday market but not necessarily compete
with the mass market.”
Monk predicted the rumoured tie-up between
Airtours and First Choice, which is dependent on a European Commission ruling
which could come as early as the spring of next year, was less than 50% likely
to go ahead. He added there are other companies First Choice could merge with.
“I would not rule
out them getting together but there are a lot of companies First Choice could
get into bed with,” he said, hinting Kuoni, Thomas Cook or Thomson could be
considered.