News

BELEAGUERED MyTravel is plugging its lack of tour operating experience by investing more than £1 million in a team tasked with predicting consumer trends.

The creation of the 10-strong consumer insight and market intelligence team - set up to review the business - comes as MyTravel reported an improved set of results for the six months to March 31.

The group pre-tax loss has been reduced to £199.6 million from £617.9 million for the same period last year. This follows a restructuring of the business to reduce its fixed cost base.

The UK operating loss stands at £164.7 million, down from £242.9 million. The group says this winter loss is still too high and admits summer trading remains challenging. Although margins have improved for summer 2004 sales they remain under pressure.

The new team, meanwhile, will be tasked with developing a competitor price analysis system, a brand tracking programme and regular customer surveys. It will also track the competition and “improve customer understanding”.

The £80,000-a-year head of market intelligence, who will report to UK marketing director Tim Marsden, will recommend changes to the business, including new destinations.

The business unit is believed to be the brainchild of non-executive director and marketing guru Dr Angus Porter.

Sources close to the company expressed mixed feelings about the new division, although all see it as an attempt to plug the gap in tour operating experience.

MyTravel has seen a mass exodus of seasoned tour operators in recent years, with founder David Crossland and senior management including Chris Mottershead, Peter Rothwell, Richard Carrick, Seamus Conlon and Steve Endacott all departing.

One observer said: “MyTravel should concentrate on building up the senior management team.”

Another said it was a strange decision for the troubled firm to increase its fixed costs.

“There are all manner of third parties to do it. It has enough marketing directors already.”

A MyTravel spokesman defended the new team, claiming there had “never been a better time to invest in the customer experience”.