BELEAGUERED MyTravel is plugging its lack of tour
operating experience by investing more than £1 million in a team tasked with
predicting consumer trends.
The creation of the 10-strong consumer insight and
market intelligence team – set up to review the business – comes as MyTravel reported
an improved set of results for the six months to March 31.
The
group pre-tax loss has been reduced to £199.6 million from £617.9 million for
the same period last year. This follows a restructuring of the business to reduce
its fixed cost base.
The
UK operating loss stands at £164.7 million, down from £242.9 million. The group
says this winter loss is still too high and admits summer trading remains
challenging. Although margins have improved for summer 2004 sales they remain
under pressure.
The new team, meanwhile, will be tasked with developing a
competitor price analysis system, a brand tracking programme and regular
customer surveys. It will also track the competition and “improve customer
understanding”.
The £80,000-a-year head of market intelligence, who
will report to UK marketing director Tim Marsden, will recommend changes to the
business, including new destinations.
The business unit is believed to be the brainchild of
non-executive director and marketing guru Dr Angus Porter.
Sources close to the company expressed mixed feelings
about the new division, although all see it as an attempt to plug the gap in
tour operating experience.
MyTravel has seen a mass exodus of seasoned tour
operators in recent years, with founder David Crossland and senior management
including Chris Mottershead, Peter Rothwell, Richard Carrick, Seamus Conlon and
Steve Endacott all departing.
One observer said: “MyTravel should concentrate on
building up the senior management team.”
Another said it was a strange decision for the
troubled firm to increase its fixed costs.
“There are all manner of third parties to do it. It
has enough marketing directors already.”
A MyTravel spokesman defended
the new team, claiming there had “never been a better time to invest in the
customer experience”.