Hays Travel marks the fifth anniversary of acquiring Thomas Cook’s retail sector with significant growth.
- The Sunderland-based company reported a striking 43% increase in profits.
- Three acquisitions and a £14.8m investment bolstered company expansion.
- An increase in consumer trust propelled travel frequency and diversity.
- Employees grew in number, reflecting the company’s upward trajectory.
Independent travel agency Hays Travel has celebrated a remarkable growth phase, achieving a 43% increase in profits, five years after acquiring Thomas Cook’s retail network. This milestone marks not only a significant financial achievement but also a strategic success for the Sunderland company.
For the year ending April 30, 2024, Hays Travel reported a 17% rise in total transaction value to £2.5 billion, alongside an 8% increase in turnover to £457 million. This financial leap included an impressive 43% rise in pre-tax profits to over £73 million and a 31% increase in operating profit, totalling £60.4 million. These results have exceeded the company’s expectations, stemming from a boost in consumer confidence in travel. Despite past challenges, such as global events and supplier changes causing cancellations, there was a notable increase in travel, with customers venturing more frequently and further.
The company’s strategy of growth included a £14.8 million investment into the group for refurbishing retail spaces, adopting new technology, and achieving other key objectives. Last year saw three notable acquisitions: three Holiday With Us branches in Lincolnshire and 19 Miles Morgan Travel shops across the south west and south Wales, adding 67 outlets to their portfolio. This continued expansion resulted in a workforce increase from 3,197 to 3,535 employees.
Additionally, Hays Travel has reinforced its commitment to excellence in customer service and harnessed a substantial workforce trained in-house, offering more than 700 apprenticeships and graduate opportunities. An impressive 37% of customers were new, a testament to the firm’s ability to attract clientele post-Thomas Cook acquisition. Their success is attributed to their emphasis on service and the reassurance customers find in using a trusted agency.
The acquisition of the Thomas Cook retail estate allowed Hays Travel to grow significantly, transitioning from 190 to 745 shops overnight. Descibed by some as a ‘bold’ or ‘brave’ move, this expansion turned the company into a household name. Despite the unforeseen global pandemic that soon followed, the company honoured its refund commitments, showcasing resilience and dedication during challenging times.
Dame Irene Hays, while reflecting on the acquisition, mentioned, “No one could have predicted a global pandemic when we took on Thomas Cook, but even with hindsight I would do it all again.” She praised the collective effort and resilience of colleagues from both Hays and the former Thomas Cook team, crucial elements in navigating through the pandemic and continuing to support customer travel thereafter.
Hays Travel’s strategies and investments have firmly positioned it as a leader in the travel industry, demonstrating resilience and growth.
