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TIQT special report: How operators can avoid failure
Tour operators need to adapt their business and widen their geographical spread in order to avoid the risk of failure, according to industry exerts.
Focusing on just one destination or region lays operators open to external factors that could impact their business, said the panel at yesterday’s Travelmole Travel Industry Question Time.
Noel Josephides, Sunvil Holidays managing director, AITO member and ABTA board director, said operators should continually reevaluate their programmes.
He said until 1991 Sunvil had specialised in Greece and Cyprus, but since then has diversified into Namibia, then Central and South America and the Azores.
“People are always moving into each other’s markets. In South America now, the competition in tailor-made holidays is intense. It’s always changing, so you need a wide portfolio and a lot of energy,” he said.
Stuart Jackson, managing director of Cosmos’s Somewheretostay.com, said failed specialist Tapestry Holidays was vulnerable because it focused on one destination.
“When Turkey was struck by the avian flu, that was very bad timing for Tapestry. You need a business model with flexibility,” he said.
Cadogan Holidays managing director Tom Allen agreed: “You need a bigger spread and if you don’t it’s a challenge.”
The panel said more operators were now moving away from the traditional seven or 14-night package, due to changing demands from customers.
Lastminute.com travel director John Bevan said this summer the online company had seen a major shift towards city breaks and short breaks to the Mediterranean.
Opodo head of tours Chris Roe said: “Customers now want the holidays they want, not what the tour operator wants to give them.”
By Bev Fearis
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
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