Hays Travel has marked a significant milestone with a remarkable financial turnaround synonymous with its acquisition of Thomas Cook’s retail sector five years ago.
- The independent company reported a striking 43% profit increase, strengthening its position in the travel industry.
- Supporting this growth, the firm made strategic acquisitions and considerable investments, enhancing their UK market presence.
- The company’s workforce expansion mirrors its business growth, with employee numbers significantly rising this past year.
- Chair Dame Irene Hays reflects on past challenges and successes, expressing pride in the company’s resilience and values.
Independent holiday company Hays Travel has reported a substantial 43% increase in profits, coinciding with the fifth anniversary of acquiring Thomas Cook’s retail estate. This financial success is reflected in its published accounts, which document a 17% rise in transaction value to £2.5 billion and an 8% increase in turnover, reaching £457 million. Pre-tax profits also surpassed expectations, topping £73 million, while operating profit rose 31% to £60.4 million. The growth is attributed to recovering consumer confidence in travel, as noted by the firm.
The company implemented strategic measures over the past year, including investments totaling £14.8 million in a retail refurbishment program, advancing Unified Business Platform technology, and other initiatives. Furthermore, the acquisition of three Holiday With Us branches and 19 Miles Morgan Travel shops expanded their retail footprint by 67 shops across Lincolnshire, the South West, and South Wales, bolstering employee numbers from 3,197 to 3,535. An integral part of Hays’ strategy was maintaining a committed workforce, evidenced by the success in attracting new customers—37% of whom were first-time clients of both Hays Travel and the acquired Thomas Cook branches.
This expansion follows the strategic acquisition of Explorer Franchise in 2021 and the purchases of Just Go’s 45 North West branches and Travel House’s 16 shops in South Wales in 2023. Such maneuvers have broadened their reach from 190 outlets, primarily concentrated in Northern England, to a significant 745 locations throughout the UK. This bold decision marked a transformative phase for Hays Travel, despite challenges posed by the pandemic, which initially resulted in a steep loss of £34.2 million in early 2021. Nevertheless, under the leadership of Dame Irene Hays, the company remained firm on its commitment to refund customers during the travel restrictions, withstanding the financial pressures.
Addressing past hurdles, Dame Irene Hays articulated her commitment to helping the talented workforce displaced by Thomas Cook’s collapse, expressing her belief in the move’s tactical soundness despite unavoidable circumstances such as the global pandemic. Her reflections emphasize the importance of resilience and adaptability, underscoring how these principles enabled Hays Travel to emerge from adversities stronger and more integrated into communities across the UK.
Hays Travel’s strategic resilience and commitment to growth continue to reinforce its market position five years post-acquisition.
