30 September 2009

Youtravel boss shares industry predictions

Youtravel CEO John Kent is confident that 2010 will be a better year for his own company, and for the entire travel industry.

Speaking at a Youtravel VIP trip to Crete at the weekend, Kent said: Ã¢â¬ÅâœWhilst the trend toward later and later booking patterns will continue, we firmly believe that 2010 will see a rise in bookings back to 2008 levels.

Ã¢â¬ÅâœBut, as with this year, we will witness a margin reduction on bookings, although not as bad as 2009.Ã¢â¬~

He believes that this winter season will not bring any major failures like the demise of XL airways and its associated companies.

Ã¢â¬ÅâœWith a decrease in aviation fuel and companies like Easy Jet taking up the slack on many routes, I am confident of a successful winter and summer,Ã¢â¬~ he said.

Kent also criticised the attempts by many companies to create bed banks by Ã¢â¬ËœXML feeds onlyÃ¢â¬â¢.

Ã¢â¬ÅâœThe only way one can create a successful bed bank is by carrying out your own contracting,Ã¢â¬~ he said.

Ã¢â¬ÅâœMany have tried to avoid this route buts itÃ¢â¬â¢s not possible. There is not enough margin to share.Ã¢â¬~

He said Youtravel is still a target for acquisition.

Ã¢â¬ÅâœWe have been approached a number of times over the past two years, but we currently have no intention of selling and will never go to the market to sell. We have a long way to go,Ã¢â¬~ he said.

Ã¢â¬ÅâœI do see some consolidation in the market, however, with the potential for maybe an online travel agent and bed bank getting together.Ã¢â¬~

Youtravel group managing director Graham Nicholls said the companyÃ¢â¬â¢s performance has been boosted by its overseas businesses.

Ã¢â¬ÅâœThe hard work we put in last year had helped many of our continental investments to prosper.

Ã¢â¬ÅâœIn France, Germany, Italy and Russia, all sales levels are up on previous years and it is a trend we see continuing.Ã¢â¬~