Holidaybreak tops profitable list
Holidaybreak was the most profitable company among British travel agents and tour operators during the last complete financial year, according to a new industry report.
The Business Ratio report, called ‘Travel Agents & Tour Operators’ and published by The Prospect Shop, analyses and compares the financial performance of 151 leading companies operating as travel agents and tour operators in Great Britain.
The report showed that Holidaybreak – whose tour operating brands include Superbreak, Eurocamp, Keycamp and Explore Worldwide – had a pre-tax profit margin of 12.1%, over five times the report’s industry average of 2.3%.
The report shows that profitability and size do not always go hand in hand. The turnover for the top ten companies in the report varies considerably – from £19.2 million to £320.1 million – and features a number of the smallest companies to be included in the report.
Top Ten Companies by Pre-Tax Profit Margin 2000/2001
|
Company Name |
2000/2001 Sales £ millions |
Pre-tax Profit Margin % 2000/2001 |
Compound Sales Growth% 1998/1999 – 2000/2001 |
|
Holidaybreak PLC |
164.5 |
12.1 |
20 |
|
Kuoni Travel |
320.1 |
11.0 |
9 |
|
Sunway Travel Coaching |
33.0 |
10.7 |
18 |
|
Hotelplan (U.K Group) |
93.8 |
9.9 |
-1 |
|
Sunspot Tours |
19.2 |
8.9 |
– |
|
British Airways Travel Shops |
19.2 |
8.7 |
2 |
|
R.E Bath Travel Service |
25.3 |
7.6 |
15 |
|
Falcon Leisure Group (Overseas) |
79.6 |
7.0 |
19 |
|
B A C Group |
21.0 |
6.9 |
-2 |
|
Noble Caledonia |
20.0 |
6.7 |
1 |
|
Overall Industry Average |
2.3 |
12 |
(source: Business Ratio Report – Travel Agents & Tour Operators )
Healthy Growth Shown by Leading Travel Agents & Tour Operators
According to the report, the overall picture for travel agents and tour operators is also encouraging, with a healthy growth in sales and moderate growth in profits during the 1998-2001 period. The average company examined in the report has seen a compound sales growth figure of 12% over the three-year period under review.
The highest sales growth figure of 1,037% was recorded by Travelstore.com followed by First Choice Retail with 255%. Compound pre-tax profit growth for the industry as a whole stands at 6%, with Creative Tours Ltd showing the highest profit growth result of 642% for the period.
Top Ten Leading Companies by Sales Turnover 2000/2001
|
Company Name |
2000/2001 Sales £ millions |
Pre-tax Profit Margin % 2000/2001 |
Compound Sales Growth % 1998/99 – 2000/2001 |
|
Mytravel Group PLC |
3949.0 |
5.4 |
20 |
|
First Choice Holidays PLC |
1880.7 |
3.7 |
23 |
|
TUI UK |
1534.6 |
-0.8 |
-2 |
|
Hogg Robinson (Travel) |
958.8 |
2.4 |
8 |
|
Thomas Cook Tour Operators |
860.9 |
-4.0 |
47 |
|
Trailfinders |
413.7 |
2.7 |
17 |
|
Virgin Holidays |
338.1 |
4.1 |
29 |
|
Thomas Cook Retail |
335.2 |
1.8 |
– |
|
Kuoni Travel |
320.1 |
11.0 |
9 |
|
British Airways Holidays |
232.2 |
2.1 |
-4 |
|
Overall Industry Average |
2.3 |
12 |
(source: Business Ratio Report – Travel Agents & Tour Operators)
Note that Unijet Travel is represented in the table by its ultimate holding company First Choice Holidays PLC. Going Places Leisure Travel is represented in the table by its ultimate holding company Mytravel Group PLC.
The table is dominated by four main industry players: Mytravel Group PLC, First Choice Holidays PLC, TUI UK (formerly Thomson) and the two Thomas Cook subsidiaries with a combined turnover of nearly £1.2 billion. But in terms of profit margin, performance was mixed. While six of the companies surpassed the report-calculated average of 2.3% for 2000/2001, two companies (TUI UK and Thomas Cook Tour Operators) actually recorded negative results.
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