Midconsort Elite, one of the last bastions of independent travel agencies, has admitted it might have to become part of a larger group to secure its future.
Travel Weekly understands Midconsort Elite members are likely to reject an offer to join a new high-street set-up from Harvey World Travel owners S8. It will be run by their former chief executive Charles Eftichiou, who shocked the consortium last week when he quit his position.
Midconsort Elite members voted to turn down an offer to join consortium superpower Triton as an affiliate of Worldchoice last year. But now the consortium is considering forming a Triton-style buying group, with Hays Independence Group and Freedom Travel Group mooted as partners.
Exploratory talks with both agency groups about joining forces have already taken place, revealed Midconsort Elite chairman Neil Basnett.
“We have to look at ways we can remain independent but work together where there is common ground,” he said. “I spoke to Freedom Travel Group general manager Trevor Davis at last year’s ABTA Convention and have held talks with Hays Independence Group managing director John Hays.”
Midconsort director Peter Buckell added: “We will talk to other consortia. I believe there is value in size. That is the way I believe we would want to work.”
Davis confirmed talks have taken place and said he is still interested in doing a deal. Midconsort has 80 members while Freedom has 115. Triton has more than 1,000.
“I would welcome talks with Midconsort,” he said. “Agents need stability and it appears Midconsort is in turmoil.”
However, Eftichiou urged Midconsort members to vote in favour this week of the S8 deal to safeguard its future.
“Over the years Midconsort has become more and more vulnerable,” he said. “Rejecting the deal would leave would leave it even more exposed.”
Triton chairman Colin Heal agreed, claiming Midconsort is “a little low on numbers” following three agencies – Readers Offers, Anthony Goord Travel and Gadabout Travel – all switching to the super-consortium.
“If only 10 of its members went across to HWT then it would put into question its viability,” he said. “Numbers are a problem, Midconsort punched beyond its weight under Charles.”
Eftichiou and his new boss, HWT managing director John Donnelly, said Midconsort members were positive about the proposal when it was put to them at a members’ meeting last week.
Eftichiou added S8 would make available resources to focus on agent training and development, while the group’s product in long-haul destinations including Australia, New Zealand, South Africa and Dubai would allow members to protect their margins.
However, Langley Travel manager Pat Waterton said no members at the meeting “were in favour of it”. “There is no way we would link up with S8 as we would have no influence,” she added.
If the S8 deal is rejected, Basnett said next month’s annual conference would discuss the future of the consortium. Donnelly claimed he has received a lot of interest from agencies to join the S8 consortium, which will be called Elite if Midconsort agrees to join. He said S8 was a serious player in the market, having set up a UK operation, headed by Andrew Laurie.
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