THE Association of Independent Operators was justifiably pleased that Airtours will not be taking over First Choice.
Competition will remain fierce and independents will have more access to aircraft seats fromAir 2000.
But, ironically, it’s not good news for independent operators and agents who were dreaming of selling their businesses and retiring to a life of luxury.
I don’t think Thomson would have put its expansion plans on hold if Airtours had been given the green light by the European Commission to buy First Choice.
In this market none of the big boys work in isolation. It’s like a game of chess – every time an operator does something it works out in advance how the opposition will respond. Similarly, many moves are a response to earlier actions or decisions taken by rivals. So when Airtours’ plans were scuppered, Thomson was able to put its expansion on hold without losing ground.
We’ve heard tales of agents who were 72hrs away from receiving a £4m cheque from Thomson. Instead, they received a letter saying the deal was off. Of course, there will be other purchases, but the days of making a big killing by selling your business are surely over.
Timing is everything and Travel House managing director Martin Morgan, who sold his business to Thomson in May for £40m, is either the luckiest or shrewdest man in the business.
Jeremy Skidmore – editor