Blog homeA couple of recent announcements in UK travel technology share a similar thread:
- Comtec - “Powell said the company, as a result of the MBO and investment, plans to treble in size within three years” [See announcement]
- Traveltek - “Traveltek is aiming to quadruple the size of its business this year, from £150million in customers’ transactions in 2007 to more than £600million in 2008.” [See announcement]
Which makes you wonder - where is this growth coming from? Which companies do Comtec or Traveltek consider are going to lose business!?
I am still waiting for the much anticipated UK travel technology provider shake up…. too many companies chasing too few enterprise clients.
In particular three kinds of travel technology companies are at risk:
- travel technology companies heavily reliant on income from high street travel agent systems
- those where operational or fixed costs are covered by developments or projects undertaken by clients (which may be cancelled or postponed if consumer demand or exchange rate fluctuation causes the business case for a development to become unrealistic)
- those selling to companies undergoing mergers because mergers / acquisitions often end up with internal reservation system rationalisation
Umm….. we are doing all right (Jack)….. although we tend to be getting more and more complex projects as potential clients evaluate us vs more expensive systems - and then find we can do it just as well.
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