Managing director Andy Freeth tells Lee Hayhurst the takeover by dnata means the operator is in an ‘even stronger position’ as it gears up for the critical turn of year period
When dnata added Travel 2 to its growing portfolio of UK travel firms this month, agents were reassured it would be business as usual.
And for the Glasgow-based air fare consolidator and tour operator, that means growth.
The achieve this, plans are already well advanced to ramp up its trade support in November and December ahead of the critical turn-of-year period.
Trade support
Managing director Andy Freeth said since the deal that saw Travel 2 become a sister company to one-time rival Gold Medal, he’s seen no drop-off in backing from independents.
“The feedback from the trade has been really positive. The main thing we’ve heard since the deal is ‘please don’t change’. As long as we support agents, they will repay that support,” he said.
“Having a very stable owner gives us huge confidence. We were in a position of strength before and are even stronger now. Dnata now owns two very strong brands with two different propositions.”
By the end of this year Travel 2 will have hosted 19 fam trips, giving 250 agents the opportunity to sample product first-hand.
Having revamped its rewards scheme so that agents can earn up to £100 per booking on a pre-loadable debit card, trade activity will ramp up from next month.
Roadshows in London, Leeds and Glasgow will each attract up to 70 agents and extra incentives will be on offer for online training.
Within Travel 2, 18 new call centre staff are being trained ready to start in January, increasing head count on last year.
In November, Travel 2’s agent website will be upgraded to offer shopping-basket functionality and the ability to book stopovers each way for up to four sectors.
Despite a drop in importance of turn-of-year trading as annual industry booking trends flatten out, 26% of Travel 2’s business still comes in January and February. Freeth said: “I can’t emphasise enough the importance we put on January and February in terms of planning for it. This will have started months ago.
“What everyone is focused on is taking advantage of those peak trading periods. All of our focus in on making sure we’re in great shape for January and February.”
Green light
Freeth said Iain Andrew, senior vice-president of dnata, had already visited the Glasgow headquarters.
He said Andrew had given the green light for Travel 2 to press ahead with a business plan agreed at the start of its financial year to grow by 10%, which would be a sixth consecutive year of growth.
Last year Travel 2 increased the value of business transacted by 12%, claiming the 12 months to the end of July also saw increased margins and profitability as it kept a tight rein on costs.
The new financial year has started well, according to Freeth, the first quarter seeing revenue from holiday sales up 20% while overall the firm is 36% up thanks to a rise in flight-only business.
This is due largely to some significant fulfilment deals with Cruise.co.uk, Iglu and Great Rail Journeys, and a partnership with Florida specialist Ocean Holidays, which supplies Travel 2 with villas.
North America remains Travel 2’s biggest market, but the Middle East, driven largely by Dubai, which is up 27% this year, now sits fourth behind Austalasia and Asia and is 5% of its business.
The launch of its short-haul luxury programme in April has seen the sector boosted, up 40% this year, while Indian Ocean is up 36% and the Caribbean 77%.
Bright future
Freeth said: “There’s nothing in front of me that worries me. We genuinely feel very optimistic. The numbers we’ve seen in this first quarter give us that confidence.”
And, in particular, he says he’s optimistic about the prospects for the independent agents he sees flourishing on the high street.
“There are lots of entrepreneurial businesses out there looking to acquire and grow.
“We’re not seeing a decline, but we are definitely seeing a change of gear for independent agents who fight for the business.
The people on the high street now are the ones that are fit, can sell, can market their businesses well. It’s been survival of the fittest.”