Dawson Marketing Services is ditching its travel brochure distribution arm after 24 years, blaming fierce price competition for the move.
The company said it has struggled since September 11 2001 and been hit by new players in the market.
More than 100 jobs could be axed, with a consultation period to run until mid-August.
Managing director Paul Butterworth said: “Brochure distribution has become extremely price competitive and we were not recovering our fixed costs.”
He said the business had been hit by the Office of Fair Trading’s decision to ban a merger with competitor BP Travel Marketing in 2002. It also suffered the loss of contracts with First Choice and Thomas Cook, which represented 30% of its business, to a competitor.
The company’s clients include TUI UK, Libra and Hoseasons. Contracts will run until the end of September.
The axeing of brochure distribution affects Dawson’s Abingdon office, which will continue to provide storage, fulfilment and distribution for clients outside of the travel sector.
Dawson’s profit-making point-of-sale fulfilment operation from its Maidenhead office is unaffected.
The company employs 180 staff.
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