Jobs under threat in Travelocity shake-up

Travelocity is considering closing its UK office as the company begins to integrate operations with Lastminute.com.

Management are holding talks with the 85 staff at its office in Stansted Mountfitchet in Essex over a proposal that would see the operation relocate to Lastminute’s offices in London and the south east.

The integration of the businesses follows completion of Sabre/Travelocity’s £584 acquisition of Lastminute.

Lastminute chief executive Brent Hoberman said he hoped many of the staff would reapply for new positions.

“We have begun consultation with our employees, and are discussing an option to close our Stansted Mountfitchet location,” he confirmed. “Should we move forward with this plan, it’s our fervent hope that our Stansted Mountfitchet staff would choose to apply for new positions in our other offices.”

The move will again raise speculation about the future of travelocity in the UK although bosses have already strenuously denied there are any plans to phase out the brand.

Hoberman said the new organisation – which will take the lastminute.com brand – will comprise multiple brands and businesses, including travelocity.co.uk. Both the lastminute.com and travelocity.co.uk websites will continue to be actively marketed, he said.

Travelocity.co.uk has already started to integrate lastminute.com’s holiday and package products into its website while Lastminute.com will this month begin incorporating Travelocity’s merchant hotel content for non-European properties.

“When the acquisition closed we said we intended to maintain a multi-brand approach where it makes sense, and share underlying infrastructure, technology and supplier relationships to drive cost savings,” said Hoberman.

“This is a classic example of that approach. We will continue to pursue opportunities to share products and technology to create the best possible offering for consumers and suppliers.”

The companies have also completed their European management structure. Business operations will be led by deputy chief executive Damon Tassone and group managing director Ian McCaig with both reporting to Hoberman.

Tassone, who as President of Travelocity Europe previously headed all of Travelocity’s operations in Europe, will be responsible for the overall strategy and integration of the combined organisation’s air, car, hotel, packaging, holidays and lifestyle products.

McCaig, who was previously chief operating officer at lastminute.com, will oversee day-to-day trading and integration of Travelocity and lastminute.com across Europe.

Mark Jones will become managing director in the combined UK organisation, responsible for all of the company’s brands and businesses here. Ned Booth will continue to lead travelocity.co.uk, reporting to Jones.

Report by Steve Jones