Resorthoppa deal tipped to improve margins in commoditised transfer market

Lowcost Travel Group’s decision to divest itself of transfers business Resorthoppa could see margins in the highly commoditised sector rise.

On Holiday Group chief executive Steve Endacott, whose group includes rival Holiday Taxis said consolidation in the sector was a sign of a mature market.

“For the transfer industry as a whole it’s very good news because it consolidates the market further leaving a dominant player and a substantial second player.

“Given the volumes required to fill coaches that probably means a completely mature market and in a mature market margins normally increase.”

In a statement A2B Transfers said the deal, rumoured to have been in the offing for a number of weeks although flatly denied by the firm, was struck for an undisclosed sum.

The new entity was described by Lowcost as a ‘merged business’ that would be its exclusive content and transfer supplier for the next three years.

Lowcost said it would continue to work with Resorthoppa, selling its products via the group’s UK and international websites, as well as being its exclusive GSA sales agent across Europe.

Renaldo Scheepers, chief executive of A2B Transfers, said: “The opportunity to operate two of the best known and well loved transfer brands has lots of advantages for both businesses.

“The brands will run side by side as we will not only retain the long standing reputation and product strength of Resorthoppa but will continue to build and develop this product.

“Most important for agents and customers is that we will continue to offer a wide choice of worldwide transfers at the most competitive prices.”

Paul Evans, chief executive of the Lowcost Travel Group, said: “We are delighted that the new merged business will be our exclusive transfer and content supplier for the next three years.

“This deal is part of our broader restructuring programme to rationalise and simplify our business and to focus on our core hotels and holidays business across Europe that is growing very nicely.”

Scheepers added: “The new transfers group will benefit from greatly increased buying power in this market which can only be good for our agent partners.

“In addition, both companies have embarked on a plan to develop business across Europe and there is now a great opportunity to accelerate this process and move forward under one parent company.”

A2B Transfers launched last year and plans further launches later this year.

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