Online travel firms ‘trashing margins’
July 03, 2008 | Online Travel
IT-led online travel companies in the UK have ‘trashed margins’ with their ‘stack ‘em high sell ‘em cheap’ approach to holiday sales, writes Travelmole.
Fleetway Travel sales director Ben Braude claimed that companies like Travel Republic had made it difficult for others to make money selling online.
“They are happy to make only £14 a head, but you have to sell a lot of holidays when you are making as little as that,” he told a YouTravel quarterly industry debate in conjunction with TravelMole about the changing world of online travel.
“Our margins are being squeezed by online retailers like Travel Republic. Our margins are rubbish now; gone are the days when you made £80 per head.”
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