Hays Travel founder John Hays admitted that he did not have high expectations of growth for his business in 2011.
Speaking in a panel debate at the e-tid business breakfast, Hays described trading as ‘OK’ this year and in line with 2009, but that trading would continue to be challenging.
“Next year will also be in line with expectations, but I don’t have high expectations. It will be tough for the next 12 months,” he said.
Hays predicted further consolidation following the tie-up between Thomas Cook and the Co-op.
“We’re in a low margin business and companies need economies of scale, so there will be more rationalisation,” he said.
“We are not interested in being acquired – we are an acquisitor and there are opportunities out there.”
British Airways sales and marketing director Andrew Crawley, also on the panel, said the aviation sector had actually had a rather good year.
“The first quarter for us was challenging with the ash cloud and industrial action, but customers have stuck with us,” he said.
“The sector as a whole has benefited from a discipline in [control of] capacity. Yields have improved in most cabins and we’re rather pleased with the upswing in Club Europe bookings.”
Monarch group chairman Fabio Mantegazza, also on the panel, said he was optimistic about the future.
“We’ve gone through a transformation process. We’re now a group with sectors that have complimentary skill sets, when previously they were fighting each other.”
Speaking from the floor, Travel2 managing director Andy Freeth said there were a lot of discerning customers who were prepared to pay for high quality holidays.
“We have more than 2,000 bookings that cost more than £10,000 each,” he said.
By Jeremy Skidmore
