Three ex-MyTravel bosses have set up a tour operator specialising in the Red Sea to work with UK travel agents.
Red Sea Holidays managing director Peter Kearns is former MyTravel product director for Panorama, Manos, Direct Holidays and ski. Sales director Jason Hilton is former MyTravel head of sales and commercial director Andy Grant is MyTravel’s former head of aviation.
The operator’s family owners are major shareholders in hotel chain Red Sea Hotels, Nile river cruise business Grand Cruises, ground-handler Cairo Express and operator Express Travel International, market leader for the Red Sea out of Germany with annual passenger carryings of 300,000.
Red Sea Holidays has been set up earlier than planned because of XL Leisure Group’s collapse last year, said Kearns. Following IT start-up delays, it went on sale in March this year with traditional seven and 14-night packages. It pays travel agents 14% commission.
Kearns said: “The XL failure stepped up our programme; originally we would not have launched until winter but the time was right to fill the gap in capacity in the market. It seems to have worked – we’re doing better than expected.”
The operator, which hopes to be UK market leader to Egypt within seven years, is bonded to carry 16,000 passengers until September. It expects 80% of sales to come from agents.
“We will have similar capacity for winter and the plan is to layer on extra capacity. We are looking at regional flying. The aspiration is to ride on the back of the success of the German operator,” added Kearns.
If successful, Red Sea Holidays’ portfolio of 15 hotels will double in three years. Hilton said: “It’s reliant on getting the UK operation up to strength to fill the hotels.”
The group previously sold its hotels exclusively through MyTravel but this contract ended as a result of the Thomas Cook merger in 2007.
Commercial deals have been signed with The Co-operative Travel, Worldchoice, and Global. “We have gone out with the message we’re an independent operator for the independent retailer,” said Hilton.