p4 oct10 8/10/08 22:36 Page 4
news
10.10.2008
Charles woos
‘Bluebook’ failure
Abta crowd
PRINCE Charles invited the travel industry to unsettles sector
join in efforts to tackle climate change and
world poverty at this week’s Travel Convention in
Gran Canaria.
Chris Gray.
consolidation. He felt it had become a
In a pre-recorded video address broadcast to THE COLLAPSE of bed bank Bluebookonline has “nonsense” for bed banks to pay
delegates on the final day of the convention in a sparked warnings the sector is on the verge of a a third-party suppliers.
session about Tourism 2023, a major industry wave of consolidation and possible failures. Youtravel sales and mar-
study into sustainable travel, he said much more Bluebookonline was one of the older bed keting director Paul Riches C
O
could be done to address environmental issues. banks and was respected as a small but signifi- added: “Everyone’s margins
STO
VER
“I can only hope that you will join me in this cant player that gave a good service to agents. are getting squeezed. Mar- R
Y
effort,” he said. “The travel sector, probably It ceased trading on Tuesday, blaming difficult gins for bed banks are 4-5%.
better than most industries, understands that trading conditions. The collapse is seen as herald- But five or six years ago, margins
there can be no secure long-term economic ing bigger changes in the bed bank sector as the were 4% better than they are today.”
growth if the environment continues to be industry enters a predicted prolonged downturn. Bluebookonline, based in Tonbridge, Kent,
degraded, and that the only sustainable business The collapse came as bed bank bosses at the is believed to have had a turnover of about
strategy is to become a low-carbon and Travel Convention in Gran Canaria digested £10 million. It had branched out from US to
resource-efficient business.” warnings about what the downturn would worldwide holidays. It was a supplier to
Abta and The Travel Foundation charity mean for their companies, already up against members of the TTA, who did about £750,000 to
are working with sustainable development wafer-thin margins. £1 million worth of business with it a year.
organisation Forum for the Future on Tourism HotelConnect managing director Chris Fraser TTA founding director Steve Clark said mem-
2023, funded by Tui Travel, Thomas Cook, The Co- believed Bluebookonline’s problems stemmed bers liked its service and product, and added:
operative Travel, Carnival UK and British Airways. from buying bed-stock from other wholesalers “The bed bank market went through a boom but
Carnival UK chief commercial officer Peter who also took a margin – slicing profits to the bone. we are seeing some fairly tight times and there
Shanks said: “We must set ourselves a goal. He said bed banks buying from wholesalers could be more collapses or more consolidation.
It’s about the industry were at a disadvantage in a tight market because It is a big market that is overcrowded.”
having one cohe- they found it harder to compete on price. Bluebookonline customers should not lose out
sive approach.” “There is great pressure on margins because as they will be refunded from a trust account.
there are fewer sales this year, but there are Clark said TTA members’ customers’ money
■ Abta
many companies out there and they are all was safe as it was not paid over to the bed bank
news,
fighting on price,” he said. until clients were in their accommodation.
p9-13
John Harding, sales and marketing director
of Hotels4U.com, said he had been expecting ■ Bed banks under pressure: City analysis, p16
European flights tipped to drop by 5%
FLIGHT information and data specialist OAG As the global economic crisis deteriorates,
has warned that the number of flights OAG said the global picture had improved
operated in Europe this quarter will drop slightly overall.
5% year-on-year, with seat capacity falling by It had predicted winter schedules and seat
5.6%. capacity to both drop by 7%, yet its new figures
This significantly revises downwards OAG’s suggest slightly lower falls in flight numbers of
previous forecast, which was predicting flight 6.1% and capacity by 5.2%.
numbers to fall 2.7% and capacity by 2.8%, This would result in 451,000 fewer flights
and comes on the back of updated flight and 46.3 million fewer seats worldwide during
schedules. October, November and December 2008.
04 10.10.2008
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