Hays Travel has put the launch of its tour operation on hold due to the global recession.
The company was set to launch its bed bank Hays Beds and tour operation Hays Faraway in early 2008. Both were delayed due to technical difficulties. The bed bank launched nine months ago and is operating well, said managing director John Hays.
However, he admitted: “We have put the tour operation on hold, given the current climate”.
He added it was important for companies to concentrate on their core businesses at the current time.
Hays said he is still optimistic about the travel sector, but admitted: “It’s not easy out there”.
He said on average, Hays Travel has been growing at 25% compound year on year, but he did not expect this to continue.
“We are not experiencing a downturn, but certainly in the current economic climate, the growth has stopped. In terms of 25% growth per annum – that is not on the cards,” he said.
Hays predicted that the economy would not start to pick until 2011 and said he expected unemployment to rise for at least the next 12 months. “I don’t think it’s going to be easy for the next two years. I hope I am wrong,” he added.