The On Holiday Group has today announced a licensing agreement to take over the operation of the high profile domain names holiday.co.uk and flight.co.uk which are owned by Chris Mottershead’s Travelzest group
The On Holiday Group will operate the brands within its “Outsourced Travel Services” division alongside other outsourced contracts with major brands such as Opodo and Portaventura Theme parks.
Travelzest chief executive Chris Mottershead said: “Having worked with Steve Endacott extensively in our Airtours days I have closely monitored the development of the On Holiday Group’s technology and marketing channels.
“Having extensively discussed the high cost of developing and operating our respective sites, it became obvious that considerable economies of scale were available by moving the operation of Travelzests core web sites to the On Holiday Group, who will also provide marketing management, call centre and administration services”.
It is estimated that this consolidation will lower the operating costs of holiday.co.uk by over 40% which will considerably boost the operations profitability in the highly competitive online market.
Steve Endacott said: “Within the online travel sector, too many companies have tried to re-invent the wheel and as industry we have spent millions of pounds on developing duplicated technology.
“In the tough trading market we are all likely to operate within over the next few years, it is our belief that the successful companies will adopt a policy of cooperation which allows each company to fully utilise its assets and resources to the maximum.”
On Holiday Group will extend the marketing of both brand into new distribution channels such as Teletext and Travelsupermarket using its unique XML connections directly to its database of over 100 million holiday options.
The brands will continue to exploit its excellent SEO ranking within Google natural search sector and will utilise OHG’s extensive experience in Pay per click advertising.