Travcorp smashes £100m sales milestone
Following record growth in the first quarter of 2022, the parent company of online tour operating brands Destination2.co.uk and HolidayGems.co.uk has surpassed the £100m sales mark for the first time in its trading history.
With a further two months to go before the end of the year, BGF-backed Travcorp Holdings, based in Chester, said it was delighted with both the progress and performance achieved across all strategic business objectives.
It said the unique mix of affordable long-haul luxury and value driven short-haul holidays has allowed the group to flex and capitalise on challenging market conditions, which have characterised the travel industry throughout the year, such as the unstable labour market, post-pandemic travel apathy, geo-political uncertainly, and pressures on consumer spending.
In 2022, the company has gained market share across all key trading areas, including the UAE, Indian Ocean, Thailand and the Caribbean, resulting in over 300,000 bed/nights, a measure of occupancy in hotel terms, confirmed to date. The group also continues to press forward with the opening of new destinations, such as the USA and South Africa, which are planned for Q1 next year. In addition, the recent launch of its cruise operation has gained rapid momentum and surpassed £1m of sales in only its first few weeks of operation.
The group’s procurement strategy and strong financial position – following the minority investment by BGF in 2021 – has been a key contributor to its performance.
Travcorp said that without the funding, the company would not have been able to be as proactive in securing direct contractors within the sector; directly contracted properties now account for 80% of its long-haul business.
Andrew Botterill, executive chairman of Travcorp Holdings, said: “The knowledge within our business is impressive and has driven our results this year. The work that we put in during the pandemic has become the platform for our growth, which together with a strong balance sheet and a strengthened senior management team, gives us a firm belief that we can and will become one of the most progressive travel groups in the UK.
“Operationally, 2022 has been a huge challenge, particularly around airline changes and cancellations. Whilst we know 2023 will continue to pose similar issues, we are focused on growth and we are confident that we can do that organically and through potential acquisitions. We are one of the fastest-growing travel groups in the UK and our partners trust us to deliver on our promises. The customer will continue to be at the heart of everything we do in our belief that ‘everyone deserves a little luxury’.”
Travcorp employs 120 people across the group.
Spencer Woods, investor at BGF and a member of the Travcorp board, said: “The travel industry has seen a significant number of casualties during the pandemic thanks to a dramatic fall in consumer demand and crippling restrictions worldwide. However, despite these unprecedented challenges, Andrew and the team have demonstrated that with the confidence to invest, and a well-capitalised business, they can deliver strong growth and secure greater market share within a highly competitive sector.
“With the world well and truly open again, and traveller confidence increasing, we anticipate that the company will make great strides in 2023 towards its goal to be one of the leading online travel businesses in the UK.”