As many as 8,389 jobs could be lost over the next year as tour operators are forced to consolidate, a report warns.
The third edition of the 2008 Plimsoll Analysis made the stark warning as Britain’s economy becomes increasingly depressed while the British Chamber of Commerce predicts as many as 300,000 jobs could be lost across the entire UK work force.
Plimsoll Publishing senior analyst David Pattison warned further analysis of the UK’s leading 1,000 tour operators has revealed the jobs will be shed in three quarters of those analysed as they seek to bring costs into line with sales. One of the largest, although unnamed, may have to ditch as many as 898 jobs to keep afloat, the report claimed.
He added a quarter of companies surveyed are already running at a loss while operators will need to target sales of at least £286,000 per employee in order to compete.
Pattison said the 210 companies analysed should consolidate immediately while a further 307 should tweak their practices to maintain profitability and stay competitive.
He added: “The 210 companies we have identified as in danger need to act now if they are to survive. It very important they review their entire business cost base and take action now to significantly reduce their outgoings.
“Whilst job losses are undoubtedly bad news for any company, such decisive action may be called for to guarantee the ultimate survival of the business- even if this means the business is 30 or 50% smaller than it was.”
To find out more, Pattison said copies of the analysis can be obtained for £350, by calling Clair Sherwood on 01642 626422 or emailing c.sherwood@plimsoll.co.uk.