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Expect more long-haul consolidation: Comment by J.Skidmore
News that Kuoni is considering taking over Abercrombie and Kent will be seen by many as a logical step.
The long haul market has suffered terribly in the past couple of years and surely more consolidation is on the cards.
It’s all very well having a good reputation, but when you are carrying relatively small numbers, a big slump can produce a massive hit on the bottom line.
However, reputation does count for something. Whether Abercrombie and Kent is absorbed by Kuoni or stays on its own, it is likely to fight another day.
The operator has a bit of a stuffy image, but it is well respected and, I suspect, most of its clients are happy.
But what of those long haul operators who aren’t offering a similar level of service?
Like their short-haul contemporaries, they are staring over the edge of a cliff.
More failures, as well as consolidation, in all markets is inevitable.
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