Former Thomas Cook boss Manny Fontenla-Novoa has described the economic climate as perfect for starting his new business Magic Rooms.
Fontenla-Novoa re-entered the travel market in April when he acquired part of the collapsed On Holiday Group (OHG) and set up Magic Rooms. He left Thomas Cook in 2011.
Speaking at the Institute of Travel and Tourism (ITT) conference in Malta, he said: “There are a lot of parallels with Sunworld which was born out of the collapse of IHG [International Leisure Group]. Magic Rooms was born out of the collapse of OHG.”
Fontenla-Novoa helped set up tour operator Sunworld, later part of Thomas Cook, in the early 1990s.
He said: “OHG did some things very well – they built the second biggest B2B business [in the UK]. We will do some things differently.
“For example, we will use Barcelo in Spain to contract for us and make payments. Barcelo has over 100 hotels, 600 shops, a bed bank. It gives us a unique opportunity.”
Referring to recent Medhotels Supreme Court case which saw the bed bank excused liability for VAT, Fontenla-Novoa said: “The change in VAT is a huge issue. Would OHG still be around if not for the VAT issue?”
He added: “The economic climate is fantastic for the industry … All these things make it [Magic Rooms] attractive.
“We’ll work hard at building a successful B2B business. Only when we’ve done that will we look at other markets.
“B2B gives you a great platform to do other things – and why not do other things if you’re successful?”
However, Fontenla-Novoa forecast difficulties ahead in Spain for rival companies.
He said: “Spain is one of the most difficult markets to crack and there could be some serious problems this summer because the [Spanish] domestic market is coming back.
“Because we use Barcelo, I feel we’ll overcome those issues. Barcelo has made it easier for us.”