Posts Tagged ‘travel’

Euston Station not built to handle HS2

Wednesday, December 28th, 2011

The controversial HS2 rail link to Birmingham from London could cause congestion at some London Underground stations which would negate the argument that it will save on travel times, according to Transport for London. The body’s deputy chairman, Daniel Moylen, has argued that if the scheme were to go ahead, then key stations such as Euston may need to shut down during rush-hour periods.

He explained that there was no space at Euston for an influx of thousands of additional passengers. It is estimated that an extra 3,400 commuters would try to use the station. The only way this would be possible, other than initiating a closure during the morning, would be an expansion project, Mr Moylen explained.

The new train line, which would transport passengers at up to 250mph, would not be opened before 2026. Critics of the project say the estimated budget of £33 billion would be much better spent improving the current transport infrastructure. There has also been much criticism of the planned route which would slice through areas of natural beauty.

Transport for London claims that if the scheme gets the green-light, then the number of people attempting to use the Victoria Line from Euston will double. It said a similar situation would affect the Northern Line.

HS2 has responded by claiming that, during the project’s primary phase, the number of passengers at Euston would only be expected to rise by around two per cent. A spokesman said HS2 would be prepared to work alongside TfL on any expansion project at the station.

Thomas Cook to shut 200 shops on the high street

Monday, November 21st, 2011

As demand for holidays in the UK remains shaky, Thomas Cook has announced that it will be closing an additional 125 shops on the high street. The travel firm has already said that its tie-up with Cooperative Travel will mean the closure of 75 outlets. The company is expected to give more details this Thursday when it will also be outlining the findings of a revue of its business.

So far in 2011, the operator has issued three profit warnings. It has seen its share value tumble from around 200p in January to 41.6p last week as investors clearly showed they were concerned. The recent troubles in popular tourist destinations in North Africa and the Middle East have not been favourable for the firm.

As with everyone in the travel industry, Thomas Cook is also battling the high price of jet fuel. The uncertain economic situation in many parts of Europe, including the UK, means that fewer people are willing to spend on luxuries such as a trip abroad.

The travel firm is the second largest in Europe after Tui. In August, Manny Fontenla-Novoa, the chief executive stepped down amid poor results and was replaced by his deputy. The company is still searching for a full-time replacement. On 1 December, Chairman Michael Beckett is also due to part company with Thomas Cook. His job will go to Frank Meysman.

The store closures are due to take place in a number of phases. Around 1,000 employees could lose their jobs, but Thomas Cook said it would try to redistribute workers where possible.

APD increase to be included on pre booked flights

Wednesday, November 9th, 2011

Britain is facing an announcement that, for the fourth time in just five years, Air Passenger Duty will be increased. Many in the airline industry are concerned that the hike will hit those who have already booked their seats on future flights. If the announcement in the Chancellor’s Autumn Statement is as predicted, the new level of APD will be introduced on 1 April 2011.

This increase will be added onto all flights after that date, meaning that those who have thought about their travel plans well ahead of time will still be required to pay the controversial tax.

Virgin Atlantic has said that it already has thousands of advanced bookings, and if the other airlines are taken into account this amounts to some 6.5 million seats already bought for after 1 April next year. APD will have to be tacked onto the price of every one of these tickets.

If the government manages to put its proposals through, Virgin said that the £2 billion raised because of the tax in 2010 would increase to £3 billion. It is expected that an average of 10 per cent will be added to the price of airline tickets after the Chancellor makes his announcement. However, some prices could go up by a third.

Hoteliers, tour companies and restaurateurs are predicting that APD will cause bookings next year to fall by around five per cent. The November 2010 APD increase saw some flights shoot up in price by well over 50 per cent.

Bangkok floods impact Thai tourist industry

Thursday, October 27th, 2011

Tourism experts are predicting that severe flooding, which has affected a number of provinces across Thailand in recent weeks, could have a significant negative impact on the travel industry. As the flood waters reach areas of Bangkok, the situation looks like it will worsen. Don Muang airport, the capital’s hub for budget operators and domestic services, has been forced to shut, as workers and passengers have difficulty reaching the terminals.

Sisdivachr Cheewarattanporn, from the Thai Travel Agents Association, said that tour companies were reporting cancellations from foreign visitors. He warned that, if the situation does not show signs of improving, visitor numbers could plummet by 20 per cent.

The country’s government had set up a crisis response centre in Don Muang, but has been forced to relocate because of the floods. The airport was also being used to shelter residents who have been forced to leave their homes. They too will now have to be moved elsewhere.

Suvarnabhumi International in Bangkok is still operating a normal service, but the airport could suffer as staff struggle to get to work. The floods across the country have so far displaced around 10 million people. The heavy rains have also caused the deaths of at least 370 people.

However, the floods have now dispersed in the north, and popular tourist spots such as Samui and Phuket have so far avoided the crisis. Tourism is responsible for around 15 per cent of the jobs in Thailand, and the industry creates six per cent of the GDP.

Currency sales increase in 2011 for long haul destinations

Wednesday, September 7th, 2011

A recent survey by the Post Office has revealed that UK holidaymakers have been attracted by long-haul destinations this summer, as the demand for currency to countries such as Mexico showed a sharp increase. Cheap, all-inclusive deals to Mexican resorts such as Cancun saw demand for the currency jump by 144 per cent over the past 12 months. Travel to Cancun may also have been encouraged by the fact that British Airways now offers a direct service from Heathrow.

Croatia also seems to have been a popular choice for a summer holiday, as demand for the kuna in August rose by 36 per cent and saw an increase in demand of around 15 per cent over the three months from June.

The survey also showed that there was an increase in demand for destinations including Thailand, Barbados and Australia. Earlier this year, British Airways also added direct services to Buenos Aires which may in part account for increased sales of the Argentine peso.

The Post Office’s Sarah Munroe said this year had again seen destinations farther afield encouraging visitors from the UK. She added that August saw the highest levels of growth and that this could indicate that there will be strong demand over the coming months from customers seeking some winter sun.

Closer to home, Switzerland and Iceland saw strong demand from Brits for their currencies, and sales of the euro were up by two per cent on June to August last year; through August demand increased by five per cent.

Government cancels coach concession

Monday, August 22nd, 2011

The government has been condemned for cancelling a subsidy paid to coach companies so that they can provide cheaper travel to the disabled and the over-60s.  The Coach Concessionary Travel Scheme, which provided half-price travel on long-distance journeys, will no longer be available by the end of this year.

Managing director of the coach division at National Express, Andrew Cleaves, said the decision to no longer provide that subsidy was contrary to Prime Minister David Cameron’s promise to protect subsidised travel. He added that the decision was likely to badly affect that elderly and could result in a number of routes disappearing.

Age UK’s charity director, Michelle Mitchell, said the coach concession was vital to many elderly people who used it to remain in contact with family and friends. She added that she had asked to government to reconsider its plans pointing out that if it went ahead more people would be isolated and lonely.

Transport spokesman for the opposition, Maria Eagle, said coach services were essential to those who do not have other transport options. She added that the removal of the concession was likely to reduce the quality of life for pensioners and disabled people who used the services to get around and go on holiday.

The Department for Transport said the coach concession had been useful, but that the government had to deal with the budget deficit. It added that the coach industry could decide to provide its own subsidies and that there would still be concessions on local bus services across the country.

Thomas Cook given approval for merger

Friday, July 22nd, 2011

Travel operator Thomas Cook is hoping that Competition Commission approval for a merger with the Co-op and Midlands will reverse its financial problems in the UK. Over the past year the firm has issued a number of profit warnings as the travel market in the UK suffers from a lack of consumer confidence and troubles in popular tourist spots in North Africa and the Middle East.

According to Thomas Cook’s chief executive officer, Manny Fontenla-Novoa, consumers are still looking to the high-street for good deals on their package holidays. The new company will be 70 per cent owned by Thomas Cook which currently has 780 stores throughout Britain. The deal is expected to save the firm around £35 million but will inevitably lead to store closures and a number of job losses.

Industry analysts have questioned the long-term viability of the merger. Some have said that a tie-up is only part of the solution and that it may do little more than boost profits over the short-term.

Competition Commission deputy chairman and leader into the enquiry, Laura Carstensen, said it was unlikely that the tie-up between the travel firms would have an impact on the price and choice of holidays because there was so much competition coming from the internet.

The deal will also create the high street’s second-largest foreign exchange business. The market leader is currently the Post Office. A full report from the Competition Commission is due in mid-August. It will now ask for feedback on its decision.

Thomas Cook profits hit by household budget squeeze

Wednesday, July 13th, 2011

Shares in Thomas Cook have taken a tumble after the travel operator announced a warning on profits. The company is blaming the recent political troubles to have hit North Africa and the Middle East as well as a lack of consumer confidence in the UK. The travel firm said that the impact from a lack of summer holiday bookings to countries including Morocco, Tunisia and Egypt is likely to be much higher than initially expected.

Forecasts in the City were that operating profits for this year would be in the region of £380 million. However, Thomas Cook has warned the figure may be closer to £320 million.

Analyst with Peel Hunt, Nick Batram, said questions were not being raised over whether management made the wrong decisions or whether Thomas Cook’s business model needed to be thoroughly revised.

The group said that its team in the UK would be conducting an operational review as household budgets continue to feel the economic squeeze. It described trading conditions in Britain as difficult. Analysts are predicting that part of the review will mean the closure of some of the travel firm’s 750 branches on the high street.

Thomas Cook did say that trading in markets outside Britain had continued to be positive, adding that in Central and Northern European markets operations were performing well.

Margins are, however, being hit in the UK, as Thomas Cook is being forced to introduce large discounts to make sure that summer packages this year do not remain on the shelves.

Natural disasters impact on Australian tourism

Thursday, June 30th, 2011

The tourism industry in Australia is suffering from the effect of a number of natural disasters this year, as a strong dollar means more people are travelling abroad than are entering the country. Poor weather, local flooding, cyclones and earthquakes in New Zealand and Japan all contributed to a terrible year for the country’s tourism and airline industries.

Qantas boss, Alan Joyce, said the carrier’s international arm was preparing to declare around A$200 million in losses for the fiscal year. The disruption to services during the first week that the volcanic ash cloud drifted over from Chile will cost around A$21 million alone.

The future of the airline is also clouded by the rocketing price of fuel and ever-increasing competition coming from airlines across Asia and in the Middle East. The flag-carrier has already announced cost-cutting initiatives, as well as a reduction in capacity and job losses. Qantas recently slimmed down its growth targets and cancelled orders of new planes.

Tourism and Transport Forum chief, John Lee, said the latest disruption to air travel caused by volcanic ash in the atmosphere was at least as bad as the chaos caused by the 1989 pilots’ strike. He added that the tourism industry was probably losing more than A$10 million every day.

Matters have been made worse by the fact that tourists coming to Australia are spending around 20 per cent less than they were just two years ago, Lee went on to say. The weak economies in the UK and America are also having a negative effect.

Kelkoo expands travel brand

Tuesday, June 28th, 2011

Customers using Kelkoo to find the best shopping deals will now find there is a wider range of travel options available. The shopping service has signed deals with Airflights.co.uk to give consumers a larger choice of airlines and destinations; with Alpharooms.com to increase the number of hotels on offer and with Lastminute.com to boost the number of holiday deals available through the site.

Kelkoo’s travel MD, Chris Nixon, said of the new affiliations: “The new partnerships with Airflights.co.uk, Alpharooms.com and Lastminute.com are extremely exciting and a real testament to the work being done to regenerate the Kelkoo Travel proposition. Offering customers access to greater choice from these three leading travel brands underlines our continued commitment to re-building our travel proposition across Europe, which has been my main focus since joining the team last year.

He added: This is the latest of many new and exciting developments we are looking to make at Kelkoo Travel over the coming year.”

The deal with Airflights.co.uk is signed until August 2011 when a review of customer reaction will take place and an extension to the service may be added. Lastminute.com has signed up until April 2012 and the deal with Alpharooms.com will be in place until at least July 2012.

Airflights.co.uk manager of sales, Colin Gill, said: “As one of the UK’s busiest travel websites Airflights.co.uk is pleased to enter into this partnership with Kelkoo. Airflights  bring a real choice of airlines, small niche tour operators and travel related products to the Kelkoo audience, whilst simultaneously increasing the Airflights brand awareness amongst the increasingly discerning UK traveller.”