Plans by Minoan Group to expand beyond Scotland, revealed in this week’s Travel Weekly, provide a fresh vote of confidence in the high street and I’m confident it won’t be the last.
Recent weeks have seen a succession of good news stories for the trade. A year ago who would have thought we would approach Easter 2014 with Ryanair fares available on GDSs and easyJet Holidays about to become a tour operator?
The collapse of On Holiday Group in March was a sour note, but the market generally appears to be improving and certainly looks better than a year ago.
Industry analyst GfK reported summer sales up on 2013 in the first months of the year and package sales outperforming the market. OHG’s failure reflects the perils of a particular sector, exacerbated by the delay over clarifying the VAT status of bed banks.
However, the good news comes alongside persistent reminders of the ease with which new companies can enter the online travel market and the risks these pose to consumers. Planet Holidays head Mathilde Robert warns this week of a proliferation of wedding planners in Cyprus and the risk some of these will “collect clients’ money and disappear”.
Her warning follows that of Abta chairman Noel Josephides who toured UK consumer travel shows in February tackling companies selling without financial protection.
Travel is more open to fraud and cashflow problems than most sectors involving big-ticket purchases. That is why it’s regulated. But until that regulation is comprehensive, it seems licensed traders are doomed to compete with pirates.