Higher costs squeeze margins at Destinology

DESTINOLOGY, the Bolton travel agent that specialises in luxury long-haul holidays, increased sales last year but higher costs hit margins.

According to recently-filed accounts for the year to October 2010 the firm saw sales rise 20% to £31.5m but pre-tax profits fell 24% to £282,000.

Higher costs dented profits and squeezed operating margins from 12.8% last time to 8.6%.

The business was founded by Dominic Speakman, whose father David Speakman is the founder and majority shareholder of Travel Counsellors which operates as a travel agent through a team of 1,000 home-based sales agents and is a shareholder in Destinology.

The accounts show that a sister operation, Destinology LLC, was forced to close its overseas office during the year to reduce costs. Destinology Ltd is owed nearly £200,000 by Destinology LLP which continues to trade in the UK.

No one at the company could be reached for comment.