0 Selected+
City and finance


11 Jan 2017

BY Sophie Griffiths

TR FB LinkedIn

Leader: You'd be forgiven for fearing the worst, but mistaken

Workers in London’s financial heartland must have thought the travel industry was about to collapse last Friday.

Sophie Griffiths Leader image

The headline emblazoned across a specialist newspaper for City workers declared that UK travel firms had been “red flagged”, with the travel industry “braced for thousands of insolvencies”.

It was taken from a warning by an insolvency practitioner, which had apparently placed 2,679 red flags over businesses within the sector, suggesting they were experiencing substantial levels of distress. Coupled with the collapse of the 15-year-old All Leisure Holidays Group (ALG) last Wednesday, you’d have been forgiven for thinking doomsday was about to befall the sector.

Last weekend, however, told a different story. The sales boom, which kicked off for many in December continued over last weekend, with agents and operators reporting record bookings on so-called “Sunshine Saturday”. And staff at one agency I visited as part of my TTG Top 50 Travel Agencies tour of the north-west laughed out loud when they saw the insolvency story, shaking their heads in disbelief as they told me the past few weeks had been some of their busiest ever.

This week, industry stalwart Miles Morgan told us about the successes of his agency chain, which celebrated its 10th anniversary in December with the opening of its 15th store and a generous gift for staff. Travel businesses, it seems, aren’t just surviving; they’re thriving.

The demise of ALG is incredibly sad, and tragic for the 150 employees that lost their jobs. But neither its failure, nor just one report from a financial company, defines the health of an industry.

Far from being disheartened by the ALG news, analysts should be encouraged that two of ALG’s operators were snapped up prior to its collapse, proving there is still appetite for acquisitions in the sector.

The state of the industry is characterised not by its few failures, but by its multiple successes. And that’s a story worth flagging.

Add New Comment
Please sign in to comment.
Job Search
Previous Searches




Comment: Overtourism, and our role to make it stop

Comment: Overtourism, and our role to make it stop

"Lots of questions, no answers. Short answer is "...
Posted by C SR 9 hours ago
‘Make sure your customer feels loved’

‘Make sure your customer feels loved’

"Thank you for these guidelines, We must take care "...
Posted by Ella Moxon 15 hours ago profits from summer expansion profits from summer expansion

"Great expansion from Jet2/Jet2 Hols. Just need to "...
Posted by Tony James 1 day ago
Tenerife marine park loses court battle over orca welfare

Tenerife marine park loses court battle over orca welfare

"Stephen...thanks for this...last time I stupidly "...
Posted by Hash Modha 2 days ago
Show me more
TTG Media Limited.
Place of registration: England and Wales.
Company number 08723341.
Registered address: New Bridge Street House, 30-34 New Bridge Street, London EC4V 6BJ
Scroll To Top