Mytravel outlines cost cutting plans for UK business
Mytravel has assured there will be no further widespread shop closures as part of its plans to cut costs by 30-£40 million in 2006 in the UK.
But head of MyTravel UK business John Bloodworth said the cost cutting programme would involve closing shops whose leases are naturally coming to an end.
“We have already achieved over £20 million in the first half and the majority of that has come from a collection of normal cost cutting and improvement in Going Places’ estate reduction.
“There will be more shop closures through natural lease closures – around 15 leases – but we want to place those people affected in other stores or within our home-working division.”
Bloodworth said when the company closed 110 stores in November it was able to retain 450 of the 500 staff affected.
It claimed the reduced number of high street stores have managed to grow overall sales by 3%.
He revealed that the internet now accounts for 18% of Mytravel sales and the group expects this figure to reach over 25% by the end of the year.
“There’s no reason why we can’t move our internet business towards 50% in the next three or four years,” said Bloodworth.
Capacity will be cut between 1.3% and 1.5% this summer, following cuts of 5% in the winter period.
On the subject of commission to independent agents, Bloodworth said the group did not plan any blanket cuts, but would focus on agents that show loyalty.
“We have reduced our overall commission, but by and large there are a number of agents who are able to support us. Those who can’t will have a different commission structure.”
By Bev Fearis
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
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