More woes for UK travel industry
Last week's sudden demise of Flyglobespan has had an impact on the whole UK travel industry with news of further casualties over the last few days. UK travel outfit Allbury Travel Group, also trading as Libra Holidays, Argo Holidays and Jetlife has fallen by the wayside and there are fears this could be the first of many additional casualties over the festive period. So why has the sector suddenly been hit by a spate of collapses?
Many in the industry fully expected a clampdown by the UK banking industry after the Flyglobespan collapse last week and they have not been disappointed. Due to a mixture of requests for more collateral, higher debt finance costs and general concern about both the UK travel industry and the UK economy, the burden on travel companies has increased. Many of these companies operate on wafer thin profit margins and indeed a number are starting to experience cash flow problems.
In many ways, the domino trail has begun with the collapse of Flyglobespan and there are serious concerns about the short to medium term future of some of the UK's smaller travel companies and also some concern about larger operations. This is a very difficult period for the UK travel industry not helped by the reluctance of banks to step forward with additional capital.
Share this..
Related stories
UK recession was the deepest since 1921
It has been revealed that the UK recession, which many believe ended in the final quarter of 2009, was the deepest and the hardest hitting since 1921. While it would be unfair to suggest that no other economies around the world have suffered to the same degree as the UK economy, there is no doubt that the UK is one of the slowest economies to recover. This has been a wake-up call to many who ro...
Read MoreIrish budget deficit largest in European Union
It has been revealed that the Irish budget deficit last year was the largest in the European Union standing at 14.3% of gross domestic product. While the initial figure of 11.8% was revised higher due to a change in the treatment of the EUR4 billion aid given to Anglo Irish Bank, there is no doubt that the finances of Ireland are in a mess. Despite the fact that Ireland has a larger budget defi...
Read MoreBank of England paints a bleak picture for global economy
Despite reducing UK base rates by half of one percent the Bank of England has tonight painted a very bleak picture of the global economy which it believes is in the "throes of a severe and synchronised downturn". The bank has also highlighted the fact that until the UK credit markets increase liquidity the ongoing reduction in UK base rates will have little impact on the overall performance of the...
Read MoreIs the UK susceptible to another economic wobble?
While Gordon Brown and Alistair Darling continue their attempts to refloat and reinvigorate the UK economy, there appear to be a number of critics circling the UK from overseas. One of the more influential and worrying comments has come from the International Monetary Fund (IMF) which has criticised the UK government for public sector borrowing, increased liabilities and the ongoing fragility of t...
Read MoreUK GDP shows worst quarterly fall in 30 years
It has been revealed that the UK economy fell by an alarming 1.6% in the final quarter of 2008 which is the worst quarterly fall in 30 years. Initially there were expectations of a 1.5% fall but these figures were revised downwards by the Office of National Statistics after a review of the case data. This is an alarming fall for the UK economy and many people now suspect that the situation will ge...
Read More