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Travelzest outsources websites to OHG
The On Holiday Group has taken over the operation of Travelzest’s domain names www.holiday.co.uk and www.flight.co.uk under a new licensing agreement.
The On Holiday Group will operate the brands within its Outsourced Travel Services division, taking half of the profits.
The deal is just one of a number of similar deals currently being explored by OHG.
CEO Steve Endacott said in the current tough trading conditions, more companies will be looking to outsource their online, marketing and call centre operations in order to cut overheads.
“We are now talking to two more companies who are interested in similar agreements. It’s going to get really tough, and companies who are losing money or who are operating on low margins need to slash their overheads,” he said.
He said more deals were likely to be finalised by Christmas.
“This latest deal, with high profile brands, will make more people take notice of what we are doing,” he added.
“Within the online travel sector, too many companies have tried to re-invent the wheel and as industry we have spent millions of pounds on developing duplicated technology.
“In the tough trading market we are all likely to operate within over the next few years, it is our belief that the successful companies will adopt a policy of cooperation which allows each company to fully utilise its assets and resources to the maximum.â€
Travelzest CEO Chris Mottershead, who worked closely with Endacott when the two were at Airtours, said there would be considerable economies of scale from outsourcing to OHG.
“It is estimated the consolidation will lower the operating costs of holiday.co.uk by over 40%, which will considerably boost the operations profitability in the highly competitive online market.â€
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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