p4 nov14 12/11/08 21:37 Page 4
news
14.11.2008
Travelzest deal
is terminated
A BUYER interested in acquiring Travelzest has C
O
pulled out due to “uncertainties in the financial
STO
VER
markets”. R
Y
According to industry speculation, a deal with WTM debate: travel journalist Roger Bray (left), Matt Cheevers (centre) and Steve Endacott
Tui Travel had been close for a number of
months.
Only last week Travelzest revealed a bidder had
completed initial due diligence and that a culmi-
Bosses to thrash
nation of the talks was expected in December.
But on Wednesday the company said: “Trav-
elzest has now been informed by the potential
buyer that, as a consequence of uncertainties in
out Atol stance
financial markets, they have decided not to make
an offer for the company.”
Travelzest said it continued to trade “in line
TTG reporters.
WTM report
cover everything or scrapped in favour
with board expectations”. TOP travel bosses will meet next week of an insurance-backed system.
Travelzest, which is listed on the Alternative to agree their position on consumer “The situation is a complete joke.
Investment Market, saw its share price protection before Tui Travel and The industry is unable to understand
nose-dive by 41% on Wednesday following the Thomas Cook lobby new transport the situation, so how can we expect
announcement. secretary Geoff Hoon in person. the consumer to?” he said.
TTG has learned the industry’s leading figures Speakers expressed their frustration at the
have been invited to a summit, initiated by slow pace of change. Some said if the govern-
Kuoni blames UK
Kingsley Event Management, on November 20 at ment was not prepared to act, industry bodies
PricewaterhouseCoopers’ offices in London. such as Abta should step in.
arm for profit hit
Following that meeting, Tui planning director Steve Endacott, On Holiday Group chief
Neil Morris and a representative from Thomas executive, said: “Getting any changes is taking
Cook will meet Hoon next month to press home far too long and I’m getting fed up of it. I am no
KUONI has blamed its UK operation for holding the views of the industry. longer willing to expose myself and the consumer
back the group’s earnings growth – and warned News of the renewed lobbying effort, which to this current system; we should tear it up.”
there was worse to come for the British market. follows the collapse of XL Leisure Group, came Simon Bunce, Abta’s head of legal services,
The Swiss tour operator said UK third-quarter as the issue was debated at WTM this week. hinted the association, despite recent moves to
turnover was down from £117 million in 2007 to Teletext Holidays managing director Matt rein back on protection, was considering making
£92 million in 2008. Cheevers said Atol should either be extended to it compulsory for members to offer protection.
And the firm said the global financial crisis
had disproportionately dampened consumer
Court action likely over Travel Republic claims
confidence in the UK.
Pre-tax profits rose from £4.5 million to £5 mil- Whatever the CAA decides to do with XL claims of out, the companies it coerced into getting an Atol
lion in the third quarter, but the weakening pound customers of non-Atol holders, some sort of court will sue them.”
meant earnings were “substantially eroded”. case is inevitable, WTM delegates were told. Simon Bunce, Abta’s head of legal services,
Speaking at WTM this week, Thomas Cook boss Steve Endacott, On Holiday Group chief said the Court of Appeal ruling, on which Atol
Manny Fontenla-Novoa echoed Kuoni’s downbeat executive, said the CAA was caught between a guidance published in January was based, was
assessment of confidence among UK consumers. “rock and a hard place”. not “straightforward”.
But he still expected people to book holidays. “The CAA never took Travel Republic to court “If the CAA says Travel Republic is a package or-
“It’s much, much worse in the UK, but people will over it, or stopped them selling. If the CAA turns ganiser, it can’t pay out; but in that case, it should
still go on holiday – maybe for fewer nights or on down the claims, it will be sued. But if it does pay not have let them trade since January,” he said.
different holidays, but they will still travel.”
04 14.11.2008
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