Sunny outlook for Travel Counsellors as profits soar 40%
TRAVEL Counsellors, the family owned Bolton-based group which offers a personal travel service through a network of home-based agents, has reported a record year with profits up nearly 41% to £5.4m.
The company, which is celebrating its 20th anniversary this year, said its results for the financial year to October 2013, demonstrated the strength of its UK business and its growing overseas footprint.
Total transaction value at the group, which has also been developing a business travel option, rose 8% in the year to £385.1m. Travel Counsellors Group turnover was 19.8% ahead at £115.2m as pre-tax profits rocketed 40.9% to £5.4m.
Writing in the annual accounts, newly filed at Companies House, financial director Derek Lorton said: “Despite a continuing uncertain economic environment, the group had another successful year. This reflects the underlying profitability of the UK business and the increasing maturity of the international businesses that we have launched in recent years.
“These results demonstrate and prove the resilience of our business model and our core strength of only recruiting the very best agents and being closer to the customer than any other travel agency in the markets that we operate in.”
The group, which has around 200 staff in Bolton and more than 1,300 home-based franchised agents, was founded in 1994 by experienced industry professional David Speakman, who remains chairman.
In an interview with TheBusinessDesk last month Mr Speakman was bullish on prospects for further growth and expects total transaction value to rise to around £450m in the current financial year.
Chief executive Steve Byrne said corporate travel is the fastest growing part of Travel Counsellors, and now accounts for around £100m of total transaction value.
“We work with growing businesses who have never had a corporate travel partner before. They see that we can get them the flights they want and at a better price than they can find online because of our buying power.”
Mr Byrne said the company has around 100 dedicated agents looking after this sector and a further 300 doing a mix of leisure and corporate bookings.
“The growth of the business travel offering, like the rest of the business, is down to one thing, and that’s customer service.”
He said the reason for the near 20% increase in turnover was that Travel Counsellors are increasingly using the company’s own IT system to create bespoke holidays for customers.
