Tour operators to shed hundreds of jobs, says industry analysts
16 July, 2008：UK tour operators could be forced to shed more than 8000 jobs over the next 12 months with a single operator in danger of shedding 898 staff, according to industry analysts Plimsoll Publishing.
In an analysis of the travel industry which included 1000 operators, the company says that as many as three quarters of them would have to reduce staff numbers in order to survive the current economic crisis. It highlights the fact that one operator is in danger of mass job losses but refuses to name the company.
The report adds that it estimates that a quarter of operators it looked at were running at a loss and that companies need to aim for at least £286,000 sales per employee in order to remain competitive.
Plimsoll says there are 210 operators that need to consolidate immediately as they are losing money, in too-large debt and are exposed to their lenders while 307 further operators need to tweak their business, making “small but simple changes”.
Plimsoll senior analyst David Pattison said: “The 210 companies we have identified as in danger need to act now if they are to survive. It very important they review their entire business cost base and take action now to significantly reduce their outgoings. Whilst job losses are undoubtedly bad news for any company, such decisive action may be called for to guarantee the ultimate survival of the business- even if this means the business is 30 or 50% smaller than it was.”