Youtravel.com is to launch into the city break market as it targets a 25% increase in turnover next year.
Group managing director Graham Nichols expects the bed bank, which will be two years old on October 31, to break even and move into profit next year following a £900,000 loss in its first year. It will have booked more than 500,000 customers in its second year of trading, an increase of 81% on last year, and almost doubled turnover to 112 million euros.
Until now the bed bank has sold predominantly beach product. The company’s growth will come from expansion into new product areas.
Sales and marketing director Paul Riches said the company would work with other city break specialists to provide product via xml feeds rather than contracting hotels itself. This could mean working with suppliers that have traditionally only sold beds direct to consumers.
He said: “We are looking to partner with city break suppliers to distribute their product through channels they would not necessarily normally distribute through.”
Worldwide city break product will be added to its website by the end of this month for agents to sell.
The company is also looking to expand its cruise-only product by working with more cruiselines. It currently only works with EasyCruise. “We have spoken to a number of cruiselines that are very keen,” added Riches.
The bed bank is in talks with cruiselines with a view to offering mid-market and four-star cruise product through its site.
Riches admitted the ski market could also be an opportunity for the bed bank in future although there are no immediate plans to sell in this sector.
The bed bank also plans to work in more international markets. Currently, international sales now account for 10% of youtravel’s turnover.