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Jostler Posted on 09/10/2019 10:03
Hays Travel takes over TC shops
 
If there's one positive to come out of this, it's that Hays has already taken on over 400 of TC's staff and now are taking over all shops, potentially saving a couple of thousand jobs.

Link: link
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TheFair86 Posted on 09/10/2019 10:05

Hays Travel takes over TC shops
Nice to get a good news story out of all of this. Still loads of jobs lost of course but every job saved is great.
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Sortie Posted on 09/10/2019 10:06
Edited On: 09/10/2019 10:07
Hays Travel takes over TC shops
Seems a strange one. More and more bookings being done on-line and some places already have a Hays branch within 50 yards of a Thomas Cook one.
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bear66 Posted on 09/10/2019 10:15

Hays Travel takes over TC shops
A quick Google suggests their profits are very low for a billion pound turnover company. For a business model that is dwindling, it does seem a strange takeover.
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Jostler Posted on 09/10/2019 10:26

Hays Travel takes over TC shops
Hmmm it could be that Hays wanted some of the shops but were told they had to take all as part of the deal and some will be merged/closed?

I can honestly say I've never used Hays, I've always thought of them as an old persons travel company? Could that be why it's viable for them? An older demographic who prefer to book in-store?
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TheFair86 Posted on 09/10/2019 10:52
Edited On: 09/10/2019 10:55
Hays Travel takes over TC shops
A lot of people will have used Hays for package holidays without realising it. When I was in my 20s I used to do a lot of the Malia/turkey type holidays using sites like On The Beach and they were all skinned Hays Travel sites that you were directed to. You just seemed to get directed to someone who sounded like they were working from home, and they booked everything and you paid the site but it was really all through Hays. When our airline went bust it was Hays that paid our refund out & dealt with our complaint around how the firm dealt with it.

below is an example: https://www.purpletravel.co.uk/holiday-organisations/hays-travel.html

"Purple Travel sells travel services on behalf of Hays Travel Limited and benefits from Hays Travelís membership of ABTA with membership number P6944. ABTA and ABTA Members help holidaymakers to get the most from their travel and assist them when things do not go according to plan. We are obliged to maintain a high standard of service to you by ABTAís Code of Conduct. For further information about ABTA, the Code of Conduct and the arbitration scheme available to you if you have a complaint, contact ABTA, 30 Park Street, London SE1 9EQ. Tel: 020 3117 0500 or www.abta.com"


Also:

https://www.stewarttravel.co.uk/terms-and-conditions/

https://www.worldsaparttravel.co.uk/about-us/

http://www.travelempire.co.uk

etc
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Steer Posted on 09/10/2019 11:16

Hays Travel takes over TC shops
I'm sure that not every single TC store made a loss. Some of them might have been profitable - and I guess it is an opportunity for Hays to grab the profitable stores.
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TheFair86 Posted on 09/10/2019 11:43
Edited On: 09/10/2019 12:20
Hays Travel takes over TC shops
Have to remember that Thomas Cook as a group will have had all sorts of activities (including flying planes) and subsidiaries around the globe which would have cost them money. Picking up these shops for a song could make good business sense - they get public good will, they can close the loss making ones quite cheaply, take the best sales staff into the fold and far cheaper than expanding organically.

Am sure Hays Travel will have looked at the books before buying these.
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Londons_Moggie Posted on 09/10/2019 13:27

Hays Travel takes over TC shops
Ludicrous decision. the reason TC went bust was due to a lack of online investment and an over reliance of High Street stores. Expect Hays to go the same way in the not too distant future unfortunately
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myfooty Posted on 09/10/2019 19:29
Edited On: 09/10/2019 19:30
Hays Travel takes over TC shops
I always thought a big part of Hays Travel business was a franchise business model with many of their agents being franchises.

It will be interesting to see the details behind this.
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hopesoboro Posted on 09/10/2019 20:49

Hays Travel takes over TC shops
Can't believe the number of successful entrepreneurs we have on this board![:D]
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TheFair86 Posted on 09/10/2019 21:54

Hays Travel takes over TC shops
Haha have said this will give them stores in a lot of places they currently donít have a presence like Scotland and Wales.

Theyíll have picked them up for a song, can take their pick of the best staff and make efficiencies

Hays also sell holidays from all tour operators; Thomas cook only sold their own, so itís a different model.
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Greenandblack Posted on 10/10/2019 06:33

Hays Travel takes over TC shops
It's a huge gamble. Nearly all of those Thos Cook stores are leased, and Hays will be responsible for the arrears as well as the ongoing lease costs. The cost of refurbishing, rebranding and repairs will be huge. And in some places there will now be two Hays stores close to each other.
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Small_town Posted on 10/10/2019 07:49

Hays Travel takes over TC shops
Good luck to them. I hope it pays off. I knew someone who worked for Hays and it seemed a good working environment. They sounded a decent company to work for
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ska66 Posted on 10/10/2019 08:49

Hays Travel takes over TC shops
Booked our holiday with Hays in Redcar this year. Just find it so much easier and feel confident in the knowledge that everything is sorted for me. Seemed busy every time we went in, to make final payment, book seats, change currency etc. But i am old.
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redwurzel Posted on 10/10/2019 12:05

Hays Travel takes over TC shops
I can see some logic in picking up Thomas Cook shops and staff in areas of the country where there are no Hays Travel.

However it is a declining market (in shop bookings) and high street properties in most Towns and cities is no longer the asset it was.

I believe they are not using the Thomas Cook brand which was seen as an asset.

Thomas Cook was burdened with debt which increased its losses and had an expensive senior management structure. The planes side was losing money as well as the travel agents. It was not just planes that was losing money. Long term planes is probably a better business, because young tourists still need to fly with someone even when they book accommodation through Air BnB etc.

It will be interesting to see how Hotels owed money by Thomas Cook deal with Hays Travel.
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TheFair86 Posted on 10/10/2019 12:17

Hays Travel takes over TC shops
Well I am sure no one at Hays Travel bothered to look at their existing business model, the costs of taking in the shops or any other sort of due diligence before making this decision.
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redwurzel Posted on 10/10/2019 12:32
Edited On: 10/10/2019 13:00
Hays Travel takes over TC shops
I am sure they have looked closely, there is a lot of money involved and the Hays Travel owners have always made money. I suspect they will run a tighter ship with more careful use of cash

On the surface its seems a strange one to me in the medium to long term.

Just seen Hays Travel accounts they made £10m profit on a turnover of £379m that shows how small the profit margins are in this type of travel business.

Sometimes people in one industry become a little insular to their own industry and underestimate external trends and pressures. Humans also have a tendency to anchor their beliefs which can cost them in some circumstances i.e. they believe something is a good investment because it was a good investment in the past. Look at Mike Ashley - 12 months ago he thought the high street was a bargain, he bought former quality names on the high street at cheap prices and he believed he was getting a bargain. He had done it previously and made money and thought history was repeating itself. Now he has said he made a mistake buying House of Fraser, despite being seen as someone who is very clever with money.
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1finny Posted on 10/10/2019 13:26

Hays Travel takes over TC shops
They have no debt
Thomas Cook was serving over £1bn in debt I think. Thatís pretty hard with such low margins.

The high street business model is still sustainable - we have 14 branches in our business and they make a tidy net profit.
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redwurzel Posted on 10/10/2019 13:51

Hays Travel takes over TC shops
1Finny

In my opinion - TC is an example of Corporate mismanagement and the directors were extremely paid.

Say 4% interest is £40m a year on TC's debt which would have added significantly to their annual losses. In normal economic times they would have had to pay 10% interest and they would have failed much earlier.

Are Hays paying money for the retail assets of TC? Are they paying with cash?

I would be also careful if I was Hays Travel and saying there are jobs for everyone.
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TheFair86 Posted on 10/10/2019 14:01

Hays Travel takes over TC shops
hotels would have no conversation with Hays travel over money owed by TC, not sure why that would even be a consideration. TC was their own agent, and has ceased trading. Hays has bought the store network, not the debt and the outstanding customer base, IT systems etc, they will integrate into Hays business model of selling tours from third parties rather than TC's model of selling their own tours only.

Not sure how a hotel would be ringing up a store of a company that has ceased trading relating to a debt of the company that used to run that store.

They will have picked up the stores for a song because the alternative is they all closed and cost the administrators money to do so. Hayes will be free to close down any sites that are near to their existing stores, and I am sure they will retain all the best staff when they do that.
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1finny Posted on 10/10/2019 14:33

Hays Travel takes over TC shops
Red
Even with no debt this is a huge move by Hays. I suspect the deal must be a good one and was structured in a way that makes it easy to take stores where they are neighbours.
It is a huge ask to scale up this quickly (IT infrastructure integration alone will be a frickin nightmare)

Hopefully it all works out - there does have to be some closures though. Just daft having two sites and overheads close by.
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YouwantsomeYougotnofans Posted on 10/10/2019 14:42

Hays Travel takes over TC shops
Can't believe the number of successful entrepreneurs we have on this board![:D]

Lol very true... [:D][:D][:D][:D]
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myfooty Posted on 10/10/2019 19:13
Edited On: 10/10/2019 19:42
Hays Travel takes over TC shops
"Not sure how a hotel would be ringing up a store of a company that has ceased trading relating to a debt of the company that used to run that store.†

They will have picked up the stores for a song because the alternative is they all closed and cost the administrators money to do so. Hayes will be free to close down any sites that are near to their existing stores, and I am sure they will retain all the best staff when they do that."

I'm sure the landlords, utilities companies, service companies, local authorities etc. will be making sure rents, bills and business rates etc. are paid and that will be the reason why the receiver where so happy to dump stores.
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redwurzel Posted on 10/10/2019 21:59

Hays Travel takes over TC shops
Another site has quoted £1bn turnover for Hays travel - so net profit of £10m is a 1% profit margin - that what you call wafer thin.

Good luck to them, I think they will need it. They at least have gained some decent free publicity in the last 2 days.
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