United Kingdom
United States
Asia Pacific
Door open for new bed bank
On Holiday Group chief executive Steve Endacott believes the company’s failure leaves a gap in the market for a quality bed bank supplier.
But he’s adamant he will not re-enter the sector.
Endacott said last week’s VAT ruling in favour of Med Hotels means bed banks are in a much stronger position.
When asked whether the demise of OHG signified the start of the end of the dynamic packaging sector, because it means agents have fewer bed banks to book, Endacott replied: "No, this is just the end of the start of DP."
He explained: "Now that bed banks have certainty over the VAT situation they suddenly become more valuable.
"OHG would have expanded much faster if we did not have the £4.5m hole (held by HMRC in dispute of TOMS). This stopped us realising finance, buying other B2C brands as planned or merging with a big B2C.
"Now this issue has gone away these opportunities suddenly become available and companies such as Low Cost Travel Group should flourish.
"However, there is clearly a major gap left by OHG as a good quality low-priced bed bank that can be filled, but it will take time for somebody to get back up to 650k passengers.
"It can and will be done – just not by me!"
He also said the industry needs to unite in a collective voice against the Package Travel Directive reforms, which could be equally as damaging.
"At the moment the Med Hotels case makes it clear that bed banks can act as agent under Flight Plus with no TOMS VAT due, however the PTD reform again threatens this and must be fought against, or we will be back to square one by 2016."
Related News Stories:
Lisa
Lisa joined Travel Weekly nearly 25 years ago as technology reporter and then sailed around the world for a couple of years as cruise correspondent, before becoming deputy editor. Now freelance, Lisa writes for various print and web publications, edits Corporate Traveller’s client magazine, Gateway, and works on the acclaimed Remembering Wildlife series of photography books, which raise awareness of nature’s most at-risk species and helps to fund their protection.
Bubba O’Keefe on Clarksdale’s Vibrant Music Scene
Commemorating Elvis and Embracing Tupelo’s Culture with Jennie Bradford Curlee
Craig Ray and the Expansion of the Blues Trail
Presenting Mississippi’s Cultural Trails with Katie Coats
Robert Terrell: A Journey Through BB King’s Influence
Rochelle Hicks: Celebrating Mississippi’s Musical Legacy
Exploring Jacksonville with Katie Mitura: The Flip Side of Florida
Tricia Handley-Hughes of Inteletravel announces the location for the TravelQuest 2025 conference
Insights from James Ferrara on Inteletravel’s Growth and Future
Tricia Handley-Hughes on Inteletravel’s Growth and Challenges
Tony from Gatto’s Pizza on Columbus’s Unique Pizza Trail
Sophia Hyder Hock on Global Social Inclusion in Tourism
Dozens fall ill in P&O Cruises ship outbreak
Woman dies after getting ‘entangled’ in baggage carousel
Turkish Airlines flight in emergency landing after pilot dies
BA pilot dies during layover
Boy falls to death on cruise ship