Home Travel agency Jobs cut at luxury tour operator as Covid cuts revenue

Jobs cut at luxury tour operator as Covid cuts revenue


Jobs have been cut at a Manchester-based luxury tour operator after its turnover fell by more than 60% and suffered losses of more than £ 1.6million due to the Covic-pandemic 19.

Carrier, headquartered in Didsbury, reported revenue of £ 14million for the 12 months ended December 31, 2020, up from £ 39million.

Documents recently filed with Companies House also show the company recorded pre-tax losses of £ 1.601million for the year, compared to profits of £ 648,903 for the prior period.

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The documents also show that the number of people employed by the company has increased from 89 to 72, with the company citing the need to conduct “cost reduction programs.”

A statement signed by the board said: ‘2020 has inevitably been dominated by the Covid-19 pandemic and the resulting travel blockages and restrictions imposed both in the UK and in destinations of overseas.

“The year started off strong with a forward booking position comparable to the previous year, but demand declined in February as Covid reached Europe.

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“The company had a few customer departures in January and February, but the impact and restrictions related to the pandemic had a significant impact on passenger volumes for [the] rest of 2020.

“The impact of this reduced revenues by 64% from the previous year and affected margins due to cancellations and major reductions.

“Despite the successes achieved with a high rate of deferrals, rather than cancellations, and the reduction in the cost base, cash reserves were impacted and therefore the company’s net asset position.

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“It seems increasingly likely that we won’t return to a normal travel market until 2023, but we would expect travel to resume more freely in late 2021 and through 2022.

“While it is difficult at this point to quantify the longer-term financial impact of the epidemic, it currently has and will undoubtedly continue to have an impact on the financial performance and position of the group in 2021,” and probably in 2022, which the administrators are pursuing. mitigate through cost reduction programs.

“The company remains well positioned financially, with the support of its ultimate parent company, the RWEW Group, and remains confident that we will emerge from this situation even stronger than ever.”


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