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Comment by Jeremy Skidmore: Retailers need new income streams
As if this year hasn’t been difficult enough for travel agents, the next few months are set to be even tougher.
For many retailers, it’s a case of going to the ABTA convention and then looking for things to do until after Christmas, when we get the traditional rush of bookings.
November and December can be very dead months in travel agencies. Go into your local and you’ll probably be greeted by three or four eager staff desperate to make a booking.
In the current climate of commission cuts, travel agents need to find new ways to bring the cash in, particularly during the quiet months.
John Donnelly, who used to run Holiday Hypermarkets, has set up a venture called The Factory Group and is opening agencies which aim to sell more than just holidays. They’ll offer you loans, enquire if you are interested in buying property abroad and ask if you need a new car. John stresses that his shops will remain travel agencies and the primary objective is to sell holidays. But he believes they are ideally placed to retail other products. John won’t be getting travel agents to double up as Arthur Daley, but instead put car buyers in touch with local experts through his shops.
Will it work? Why not? Even if all the ideas don’t come off, you have to admire John for trying something different.
Many in the industry wrote off the Holiday Hypermarkets when he introduced the concept several years ago, but he made them work. His efforts should provide an inspiration for other travel agents in the UK. I’m not suggesting everyone should suddenly start offering loans or selling overseas property, but they need to think about how they can increase their turnover in their local area.
Surely no-one in this market can afford any more slack months.
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