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24
March 2009
The Lowcost Travel Group plans to expand
further into the holiday ancillaries market
and increase its dynamic package sales
following its recent acquisition of
transfers specialist Resorthoppa.
Resorthoppa was bought in January and has
since cut costs by nearly £2 million.
Group chief executive Paul Evans said the
group had taken out £1.3 million in
Resorthoppa's overheads and clawed back
savings of £600,000 after discussions with
suppliers, enabling the transfer specialist
to reduce prices by 8% on average per
passenger.
"One of the reasons we have been able to be
so aggressive on price without affecting
margins is because we have taken at least
£1.8 million in costs out" he said.
The group has plans to extend further in the
ancillaries market, through organic growth
and acquisition, in the next six months to
offer product such as car parking and
airport hotels.
Ultimately it hopes to provide more dynamic
packages, moving the group away from being
known solely for its bed bank
lowcostbeds.com, which makes up 60% - 70% of
sales.
"We are not a bed bank; we're a
leisure company" said Evans.
As part of this, lowcostholidays.com will
become the group's main website instead of
lowcostbeds.com. lowcostbedsagents.com will
remain the trade site.
Evans added: "Longer term we will move
towards selling packages to the trade and
direct - that's the ambition."
The group is now encouraging agents to sell
its beds and transfers together by offering
bonus commission to agents who make
accommodation with transfer bookings by
April 19. Transfer prices featured on
lowcostbedsagents.com are also on average 5%
cheaper than on resorthoppaagents.com.
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