Travel Counsellors confirms IPO an option as sales hit £500m

Steve Byrne, chief executive at Travel Counsellors

Independent travel company Travel Counsellors has confirmed it is considering a stock market flotation to support its growth, as its sales pass the £500m mark.

The sales figures for the year to the end of March 2017, mark a 22% increase in UK sales and a 20% increase globally when compared with the same period last year, as the Manchester-based company reaps the benefits of creating a loyal customer base and investing in the latest technology.

Established in 1994, Travel Counsellors provides a personal approach to booking corporate and leisure travel, using a 1,600-strong network of franchisees across the world. Customers are provided a personal travel counsellor, designed to create lasting relationships and tailor trips to suit personal preferences and requirements.

This approach has been shown to increase brand loyalty, with Travel Counsellors reporting that 63% of bookings in the last 12 months were from repeat customers.

Average spend has also risen by 25% to £2,600 over the past five years, while over half of customers are between the ages of 40 and 69.

Travel Counsellors says its fast growth can also be attributed to its ongoing investment in technology. In December, the company announced its intention to invest £21m into the business over the course of 2017, with the objective of boosting its digital infrastructure and enhancing its offering to customers.

This includes heavy investment in the development of its in-house quote and booking system, enabling its tour operators to create unique itineraries to customer preferences and interests.

The investment has already paid dividends for the company, with the system seeing a 12% increase in sales globally over the past 12 months, with 25% of its total revenue now generated outside the UK.

The company, which appointed its 1000th UK-based tour operator earlier this year, has a further 600 Travel Counsellors working overseas, with operations in Ireland, the Netherlands, Belgium, South Africa, Australia and the UAE.

Backed by private equity house Equistone Partners Europe, total accounting turnover for the business rose to £188m in the year to October 2016, up from £162m last year – marking an 11th consecutive year of double digit revenue growth.

Profits were also up by more than 34%, and have grown a total of 60% since the 2014 private equity investment.

Steve Byrne, chief executive at Travel Counsellors, told TheBusinessDesk: “A float is one of a number of options being considered to support the continued growth of the Travel Counsellors brand.

“Private equity investment has played a major role in the expansion of Travel Counsellors’ operations in both the UK and abroad, which is highlighted by our recent strong financial results.

“The growth figures also allow us to continue to invest further in technology and our people in the coming year.”

Close