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The sector saw tragedies and bankruptcies, but there were also successes and political victories. Sophie Griffiths takes a look at the highs and lows of the past 12 months
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The year began with a positive message from the independent sector, which reported a strong start to 2014. Niche operators continued to thrive as indie agents lent them their backing, and stayed away from mass-market operators.
Meanwhile, the Airports Commission was told by the government to refrain from announcing its final recommendations for airport expansion until after the general election. Sir Howard Davies heeded the advice, announcing in September only that it was recommending Heathrow and Gatwick for expansion.
Winter storms lashed the UK, and as Brits longed for summer, so school-holiday pricing dominated the headlines. Aito and TTG combined forces and headed to Westminster to present the trade’s case on peak-season pricing to parliament.
Elsewhere, the M&A market was awash with rumours, and it was announced that Dubai-based dnata had purchased Gold Medal. Not all was well in the trade however, as it emerged that Preston Travel, parent company of Longwood Holidays, had collapsed.
The courts were also kept busy as the infamous Goldtrail case began, while overseas, Egypt was back in the news, amid fears that its tourism industry was set to suffer another setback following the resignation of its government.
As spring arrived in the UK, the business failures continued, with the collapse of the UK’s biggest independent bed bank, On Holiday Group.
Owner Steve Endacott urged those staying in the industry “to get their brains tested”. The courts also remained busy, when the company formerly known as Medhotels won its £7.1 million VAT battle against HMRC in the UK Supreme Court, heralding a victory for the trade.
Elsewhere, politics divided the industry, as the ITT was forced to defend its decision to invite Ukip leader Nigel Farage to speak at its annual conference. And the industry - and world - was rocked by the first of two tragedies involving Malaysia Airlines, when MH370 disappeared. Nine months on, there is still no sign of the aircraft or its 227 passengers.
This was the month that ex-Cook chief Manny Fontenla-Novoa arrived back on the travel scene, with the launch of bed bank Magic Rooms from the assets of On Holiday Group. Travel bosses questioned his decision to move into this highly competitive sector, insisting that Fontenla-Novoa would need a “grand vision” if he wished to make a success of it.
Elsewhere, the much-loved Aphrodite Hills, favourite of the indie sector, was facing an uncertain future as commercial negotiations dragged on with Tui.
Members of Freedom Travel Group expressed alarm as their boss, Alison Holmes, announced she was leaving to head up Midcounties Co-operative Travel consortium.
David Cameron received an ear-bashing from the trade for his “ignorance of the travel industry” after he accused companies of “sometimes deliberately putting up prices at holiday time”.
Ukip was back in the headlines, amid concerns the party’s triumph in the European elections could lead to a weakening of the travel industry’s ability to influence the reform of the Package Travel Directive. And Yorkshire-based Villa Parade failed, leaving agents who hadn’t updated their agency agreements out of pocket.
Farage faced a grilling from TTG and ITT delegates on his (less than impressive) plans for travel, including a bizarre explanation of how angling should be central to the UK’s plans to grow tourism. Back in the real world, the CAA warned there would no longer be a grey area for agents who failed to have their agency agreements in place. The authority was also kept busy by OTA Airfasttickets.co.uk, after Iata issued a letter warning its airline members that it had placed the UK office in default.
There was also that ruling against Jet2.com, regarding passenger compensation for delayed flights. And who could forget a certain Uruguayan goal scorer, who sent the England team home with their tails between their legs? It was all smiles for the trade though, which celebrated a spike in sales following England’s defeat.
The CAA revealed plans to phase out Small Business Atols, triggering fears that the trade would face higher costs, especially those joining the Atol scheme from 2015.
Cruise occupied the headlines, as Princess Cruises split opinion in the trade with its TV show The Cruise Ship. The public were however enthralled, with 3.1 million of us tuning in to watch the first episode. Costa Concordia was also back in the news as the wreck was finally raised, with salvage costs soaring to more than $1.5 billion.
And then the world watched in horror as Malaysia Airlines suffered its second tragedy of the year when MH17 was shot down over Ukraine, killing all 283 passengers. The disaster triggered calls for a global review of airspace safety.
It was all go in the agent and tour operator sector, as indie agents said they would stop selling Aphrodite Hills, after it was finally confirmed the resort would be joining the Thomson Sensatori collection.
Virgin Holidays created 200 jobs as its “retail lite” concept took hold in Tesco stores, with 29 opened by the end of November, and Hays Travel signed a deal to acquire a 40% stake in Just Go.
Boris Island looked to be dead in the water, as the Davies Commission ruled out the London mayor’s plans for a new four-runway airport in
the Thames Estuary.
In its latest hint that all was not well in the business, Monarch revealed it was seeking to change workers’ terms and conditions, while fears continued to grow over the business’ future, as it requested an extension to its Atol licence.
And who could forget the big story of the month, when the most rumoured acquisition of the year was finally announced - dnata’s purchase of Stella Travel Services. The news raised eyebrows in the trade, with many questioning how competitors Travel 2 and Gold Medal would work alongside each other, but the companies insisted - and continue to maintain - they can co-exist together.
The trade breathed a sigh of relief as GreyBull Capital signed a last-minute deal to rescue Monarch. Meanwhile, after rumours that the service was failing to perform, Virgin Atlantic confirmed it was axing its Little Red operations.
There were also more company failures, as OTA Bookable Holidays collapsed, blaming red tape and “self-defeating government legislation”.
A certain Scottish travel agency - and its pink ladies - helped raise smiles however, when its advert rocketed to fame, attracting a million online views. Thorne Travel saw bookings soar 110%, while TV companies flocked to its shop in Kilwinning, Ayrshire, pitching ideas for reality TV programmes.
Quantum of the Seas officially launched in New York, complete with robotic bartenders and dodgems, while TTG continued its celebration of young people in travel with the launch of the Tomorrow’s Travel Leaders Conference.
The gossip at the end of the month, however, was about Thomas Cook and the sudden exit of Harriet Green - news that took everyone by surprise, from senior trade commentators to City analysts. Company chairman Frank Meysman moved quickly to quash suggestions that she was forced out, but that did little to quell the rumour mill.
Chancellor George Osborne presented the trade with an early Christmas present, with the surprise announcement that APD on children’s flights would be axed.
Meanwhile in Europe, concern was mounting after it emerged that the European Council had disregarded initial proposals for the PTD, triggering angry reactions from Abta and European trade bodies, and raising fears about what this would mean for the industry.
