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PRIVACY
Enterprise

Pandemic rocks travel service provider's finances as it's forced to cut jobs

Travel Counsellors is owned by European private equity firm Vitruvian Partners

Mgarr harbor, Gozo island, Malta

The impact of the Covid-19 pandemic forced a bespoke travel service provider's revenue to fall by almost 60% during its latest financial year as its pre-tax losses widened by nearly £60m.

Manchester-headquartered Travel Counsellors, which launched in Bolton 1994, has reported a revenue of £124.4m for the 12 months to October 31, 2020, compared to the £309.7m it reported during the same period in the prior year.

Travel Counsellors, which operates a franchise model, has also posted pre-tax losses of £81.5m for the 12 months after also posting losses of £23.4m in the year before.

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The group is owned by European private equity firm Vitruvian Partners which also backs the likes of Chester-headquartered Sykes Holiday Cottages.

The accounts, which were submitted to Companies House, also confirmed that Travel Counsellors cut a number of jobs at the end of its financial year, although the documents do not reveal an exact figure.

A statement signed off by the board said: "The group was making excellent progress against both its budget and growth forecast prior to the outbreak of Covid-19 and because of this good progress we are well placed to capitalise on the inevitable structural changes as the market normalises post the pandemic.

"The flexibility and asset light nature of our business model, together with our trust account protection for customers, positions us well to see through the Covid-19 disruption and prosper when normal market conditions return.