First Choice boss evades sell-off questions
First Choice chief executive Petger Long has declined to respond to questions surrounding the possible sale of the group’s mainstream holiday arm.
He made it clear on a trade media conference call following the group’s year-end financial statement that he would not be discussing the subject.
Long said he had “nothing further to report” on the issue but said First Choice would continue to reduced its exposure to the short haul market as it moved away from the commodity holiday sector.
He also stressed that the group would maintain its important strategic relationships with third party retail partners despite increasing the proportion of in-house sales.
As previously reported by TravelMole, the company is on target to achieve three quarters of its sales through controlled channels by the end of the 2008 financial year and wants to exceed that level.
Meanwhile, online sales have increased to 32%, up from 25% last year, sales from in-house travel agencies have grown while call centre sales remain flat.
The increase in direct sales has led to a £5.9 million saving in distribution costs in the past year.
The First Choice retail chain is to be expanded with 45 new outlets before the end of December in addition to franchise arrangements which will increase the store portfolio by 50. The company is also trailling ‘travel pods’ in Asda, Sainsbury, Morrisons and Waterstones.
“As we drive towards becoming a predominantly direct-sell business, we need to continue to build and develop our own distribution channels,” a group statement said.
“This investment in retail has been primarly funded through reduced commission rates paid to third party travel agents.”
Report by Phil Davies
Phil Davies
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