p14 oct24 22/10/08 17:33 Page 14
news TTA Worldchoice analysis
ttglive.com
TTA’s takeover of Worldchoice has put Simon Hargreaves at top of both groups.
He talks to Lucy Huxley about commercial deals, DIY and Triton membership
Hargreaves eyes niche
Quick guide TTA & TTA Worldchoice
■ TTA 2007 completed its takeover of
Worldchoice on October 13.
sectors for TTA W’choice
■ It paid £43m for Worldchoice, financed by a
£46m loan from Royal Bank of Scotland.
■ The deal triggered payouts to 647
Worldchoice shareholders totalling £4.4m.
■ The TTA and the newly-named TTA
THE NEW managing director of TTA Worldchoice Worldchoice remain separate entities, with
wants to address the consortium’s “shrinking separate membership lists. Both are owned
membership” by establishing it as the best group by parent holding group TTA 2007.
in the industry for niche sectors. ■ The two consortia will negotiate collectively
Simon Hargreaves said he would find new to secure better commercial terms and will
members not by “poaching” from other share marketing, admin and technology.
consortia such as Advantage, but by becoming ■ Simon Hargreaves is managing director of
“famous for specialist niche sectors like cruise”. TTA 2007, the TTA and of TTA Worldchoice.
“If we can differentiate it even further then
suppliers will value it more,” he said.
“If we can get known for being a cruise Simon Hargreaves: “I’ll make Worldchoice more profitable”
specialist consortia, then the new members will
In brief
come. I think Worldchoice is slightly ahead of any “We have compared the TTA deals with those
other group on cruise already.” of Worldchoice and some are better and some ■ Membership fees ‘won’t increase’
Hargreaves also wants to “take a long hard not so good. We now hope to marry those up.” The cost savings that can be achieved through
look” at Worldchoice’s predominantly “classic Hargreaves added: “I could run Worldchoice the takeover of Worldchoice mean TTA will not
high street retailers” and at how the internet and not change it at all and still make money. But have to increase membership fees, according to
can be better used. And he hopes to secure I am sure I can make it even more profitable.” managing director Simon Hargreaves. “I would
better commercial terms for both TTA and TTA have always fought putting up the fees, especially
Worldchoice following the takeover. ■ Worldchoice tests TTA Atol: Cruise, p26 in a downturn. But I am now confident that I
won’t have to because of the synergies we can
Agents promised help with DIY cover
achieve by acquiring Worldchoice,” he said.
■ TTA touts merchant rate for start-up firms
WORLDCHOICE members do not understand “We will look at each one and see if we can The TTA claims it can offer small start-up travel
dynamic packaging and worry about taking risks propose something.” businesses the best merchant acquirer rates in
they do not comprehend. But Hargreaves added: “I don’t know if the the business, of about 1.4% rather than the stan-
That was the message from the consortium’s take-up will be high. It takes something big to dard 2%. Managing director Simon Hargreaves
representative body when it met with new move people out of the way they have been said small businesses would not be able to get
managing director Simon Hargreaves. operating for years. But if Abta doesn’t pay out the rate on their own and it would make a
He said: “We will propose a solution for them then they will probably move.” significant difference to profits on big volume.
where they can get cover for each booking. He said he thought Abta would continue to pay
“It’s a disparate membership with different “while it could afford to”. ■ New web banking system tested by members
problems, but I can find the problems and solve “But if there is a fraud costing it millions, then TTA is piloting an updated internet banking
them in various ways. they’ll cave in. And if you are a Worldchoice system. The new system, from RBS, is on TTA’s
“Some of them wanted to know if they could member who has been let down, then you’ll be members’ desktops, allowing monies to be trans-
run their operations without being Abta members. thinking, ‘is it worth staying?’” ferred automatically into the TTA’s Trust Fund. It
will be rolled out to all the membership shortly.
Triton ‘must fulfil better deals vow’
■ Hargreaves acclaims association’s growth
TTA managing director Simon Hargreaves
THE NEW TTA Worldchoice will stay within Triton members differentiated and unique deals. If claimed the association was the “only” consortia
only if it gains enhanced deals as promised, that’s the case then great. That is an advantage that’s growing. “We’ll have 120 new members this
according to managing director Simon Hargreaves. for members and we would be mad to leave. year and have already done about 100,” he said.
And he said the TTA was likely to follow what- “I need to have a proper look at the offer
ttglive.com
ever Worldchoice decided to do. and we’ll decide whether we’ll stay or go; and
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He said: “Triton said it would give Worldchoice whatever we decide, TTA will follow.”
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14 24.10.2008
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