One in six tour operators could change ownership as a result of the economic climate, a new study by financial analyst Plimsoll has found.
The market is set for a prolonged period of consolidation, as cash-rich companies snap up their stuggling competitors, the report claims.
Author of Plimsoll Industry Analysis – Tour Operators David Pattison said: “In the current climate, there are too many companies chasing too little market. With many directors eyeing the exit doors, and highly leveraged buy-outs consigned to history for the time being, it really is a buyers’ market out there for cash-rich companies.”
Pattison said the analysis has identified 300 companies that have enough cash to buy up large chunks of market at rock-bottom prices. The report has also selected 157 companies, out of 799 analysed, which are primed for a buy-out.
“The UK tour operator market is still widely regarded as one of the UK’s most fragmented sectors. The market is set for a wave of takeovers in the coming months,” he said.