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Youtravel.com, the UK’s leading independent accommodation-only company, is focussing on expanding its range of exclusive deals with hotels in the next 12 months. Currently it offers ‘suggested hotels’ or ‘favourite hotels’ in each destination, however moving forward this top tier of partner hotels will be merchandised more prominently on the website.
Youtravel.com is looking to build on its core strengths of strong hotel relationships and unique properties, board bases and availability.
Sales director Paul Riches said: “This is not solely about price. We are not trying to grind down prices to the lowest possible level. It’s about getting more exclusive availability from key hoteliers, or an exclusive deal within the UK bed bank sector. We want our travel agent partners to know that when we promote a ‘favourite’ hotel that it’s for a real reason, such as an all-inclusive option that’s not available anywhere else in the market. We’re going to be working hard to secure more of these partnerships in the coming months. We hope that within a year, around half of our sales will be driven by these sorts of partnerships.”
Over the past 12 months youtravel.com has become more selective with its hotel partners and as a result has removed more than 200 under-performing properties from its website.
Riches added: “Unlike some of our competitors, we are focused on the direct contracting business model, and this continues to be very much our focus moving forward. Over the past 18 months we have trialled having links to other providers via XML links on our site, however the reality is that our customer base wants exclusive deals from hotels which we have vetted, have great relationships with and are able to offer our agents something extra. For example last winter we offered free return airport transfers to key hotels in Egypt.”
Business update
Youtravel.com is on target to hit profits of around €1.5million at the end of its fourth year of trading (ending October 2010). Group managing director Graham Nichols commented; “This signals a significant milestone for youtravel.com. Last year we turned our first small profit and this year’s forecast of €1.5million profit really cements our position as a mature but growing business in the UK accommodation-only market. In a highly competitive market, we have grown from start-up to turnover of €120m, in four years. Youtravel.com is totally committed to the travel trade, investing more than £250,000 in UK trade relations in the past 12 month.
Nichols said: “More than 95 per cent of youtravel.com’s business is transacted through agents – unlike rivals who actively pursue direct business which competes with their customers. Moreover, youtravel.com has been acting as principal since its inception in October 2006 and paid all appropriate VAT through the TOMs system. In spite of this we have competed successfully against rivals who predominantly do not currently operate within this scheme.
“We believe that all accommodation suppliers should operate on a level playing field and following the recent investigation by HMRC into Medhotels this issue has been bought to the fore of discussion.”
In May 2010 youtravel.com secured new Abu Dhabi funding after a new company under the control of its founder and chief executive John Kent and His Highness Sheikh Tahnoon Bin Saeed Al Nahayan, a member of the royal family of Abu Dhabi, acquired Barclays Bank PLC shareholding in youtravel.com. Kent’s Aquis Hotels and Resorts business continues to go from strength to strength and has amibitous plans for expansion in the coming 12 months.
Nichols added: “This will ensure that the group is funded appropriately as we move into our fourth full-year as the UK’s leading independent bed-bank.”
Youtravel.com has operations in Greece, Italy, Germany, Spain, Sweden, Ireland and France and international sales now account for 15 per cent of the group’s turnover.
UK sales update
Youtravel.com’s top selling destinations for summer 2010
- Costa Blanca
- Algarve
- Dalaman
- Sharm el Sheikh
- Gran Canaria
- Crete
- Lanzarote
- Tenerife
- Agadir
- Majorca
The euro zone destinations have re-established themselves this year with Costa Blanca and Algarve proving the most popular. Bars, hotels and restaurants have adjusted pricing this year, in order to compete with the likes of Turkey and Egypt, making the euro zone more affordable than in the previous couple of years.
Destinations considered to be winter sun destinations by the major tour operators – Sharm el Sheikh, Gran Canaria, Lanzarote and Tenerife – have been huge sellers for youtravel.com over the summer. The DP market attracts travellers who are more familiar with destinations and are likely to be on their second, third or even fourth trip there – this means that they’ve got more knowledge on when to travel for better prices, less crowded beaches, or just somewhere a bit different for their summer break.
Youtravel.com’s fastest growing destinations for summer 2010
- Rhodes +374%
- Agadir +292%
- Gran Canaria +271%
- Fuerteventura +165%
- Ibiza +164%
- Lanzarote +159%
- Corfu +158%
- Dalaman +147%
- Tunisia +133%
- Majorca +103%
Rhodes and Corfu are both in the top 10 fastest growing destinations for youtravel.com in summer 2010, this is largely thanks to the relationship between it and Aquis Resorts and Hotels, which operates key properties on both islands. Riches added: “This is indicative of the sort of partnership we are intent of forging with more hoteliers in the next year, and as you can see it works well for both parties in terms of sales increases.”
Agadir is the second fastest growing destination for youtravel.com, indicating that Morocco -is no longer seen as purely a city break destination – British travellers are now venturing further afield than just Morocco.
Youtravel.com’s top selling destinations for winter 2010-11
- Costa Blanca
- Gran Canaria
- Hurghada
- Algarve
- Sharm el Sheikh
- Tenerife
- Lanzarote
- Cyprus
- Fuerteventura
- Malta
As with the top selling summer destinations, the winter best sellers are also dominated by the big euro zone resorts, namely Costa Blanca, the Canary Islands, Malta and Algarve. This is not purely down to prices being adjusted but also the fact that these are key destinations for keen winter travellers such as older groups on long stays, golfers, and families looking for close-to-home winter sunshine.
Unsurprisingly Egypt is performing well for the coming winter months with both Sharm and Hurghada featuring in the top 10. Along with great value for money these destinations also offer guaranteed sunshine without the need to fly long-haul.
Youtravel.com’s fastest growing destinations for winter 2010
- Nile cruise – Egypt +524%
- Majorca +489%
- Malta +451%
- Lanzarote +137%
- Fuerteventura +131%
- Tunisia +103%
- Agadir +101%
- Costa Blanca +93%
- Gran Canaria +83%
- Cyprus +70%
Egyptian Nile cruises are showing a massive increase for youtravel.com this winter. Riches attributes this to revamped products plus also the high repeat factor for Egypt: “Once people have sampled the beaches they tend to go back to see the historic sights.”
As with the summer sun fastest growers, youtravel.com is seeing a reversing of destinations to those of the ‘traditional’ tour operators – with summer sun favourites such as Majorca, Costa Blanca and Cyprus seeing a boom in the winter months. Riches added: “For hoteliers this is great news as it means that the summer peak is now evened out throughout the year.”
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
