Credit crunch is boom time for travel firm
Sep 17 2008 by Aaron Boland, Daily Post
A NORTH Wales travel agency said yesterday business was booming – despite the current crisis among tour operators and airlines.
More people in need of a break are staying in the UK rather than going abroad, leading to a surge in local holiday bookings, said Rhyl-based Wetravel2u.
Fewer people appear to fancy a trip abroad because of the collapse of major tour operator XL, and airlines such as Zoom going to the wall.
Profits at Wetravel2u were up 30 to 40% on last year after the firm decided to focus on the UK market.
And against the backdrop of the crisis sweeping airlines and international tour operators, it was a different story at home according to Wetravel2u boss Dave Jones.
He said: “In the last three months our UK breaks have increased four to five fold and we are about 30% to 40% up on last year on profits.
“People are taking more internal breaks across the UK to destinations including London, Edinburgh, even Abergele and across to Dublin.
“They can also range from anything from a couple of days break to a week.
“People are more likely to take breaks within the UK and we took the decision to focus on the UK market in December.”
Other travel agencies also reported no real problems yet.
Dawn Ferguson of Clwyd Travel, Hawarden, said: “There has been no real change compared to last year.
Both Mr Jones and Ms Ferguson said the current problems underlined the importance of booking holidays with an Air Travel Organisers Licence (ATOL) travel agency which give customers protection when going abroad. People who book through an ATOL company are covered if holiday or airline operators go bust.
Customers who piece their own holidays together may not be covered.
Mr Jones added: “When a large company such as XL Holidays and airlines such as Freedom Flights, and Zoom go in to liquidation all those passengers who have booked their package holiday with an ATOL such as us, would have had their holiday covered by the scheme.
“Passengers on vacation have been allowed to finish their holiday and received an alternative return flight. All those waiting to travel have been offered a full refund, or the same holiday, but with a different company.
“Passengers who had booked a flight only with us are covered by the International Air Transport Association and the Civil Aviation Authority which acts as an airline failure insurance.
He added the only people who would lose out were the ones who had put together a holiday themselves. “These people are acting as a tour operator,” he said.
stevebagnall
