That “cheerful” publisher Plimsoll Publishing recently said 70 UK Tour Operators are looking like HMV (a once popular and now defunct Music store chain) and could soon fold.
When I read this I assumed that this would just be another example of the evolution of travel sales leaving the established travel business behind in terms of product and customer behaviour.
Plimsol Publishing concluded "As seen with the recent closures and administration of big high-street stores, these were all victims of outdated business models. It's much the same in the tour operators market, the overall market is healthy, but these companies are falling behind.”
However if you look at what ABTA say it may not be the case. Recession hit Brits are going back to packaged products and the high street channel has seen a rise in 2012, with 27% booking through a high street agent compared to 25% in 2011
Now I have always understood that most organisations fail at the end of the recession. Could this finally be the case. Travelmole reported yesterday that this market is seeing sales increasing at 7.2%, with margins sitting at 1.8%