Minoan to install network of kiosks

Business Correspondent/Personal Finance Editor

Thursday 18 October 2012

MINOAN Group, the AIM-listed leisure business based in Glasgow, has agreed an exclusive deal with the UK's 9000 sub-postmasters to roll out a network of self-service travel agency kiosks in post offices.

GOOD MOVE: Duncan Wilson said the deal would enhance Minoan's position nationally. Picture: Colin Templeton

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Simon Bain

Minoan, headed by former Direct Holidays chief Duncan Wilson, acquired three Scottish travel agents last year in deals worth £4m, and will run the business through its Stewart Travel subsidiary.

An initial three-month pilot will see 50 kiosks installed, with a target of 1000 over five years.

Mr Wilson told The Herald the National Federation of SubPostmasters (NFSP) had been "enormously enthusiastic" about the agreement, adding: "We have been inundated with requests to be part of the first programme. My own view is that rural and semi-rural areas are likely to be the most fertile ground for us."Kevin Waddington, NFSP branch secretary for the Scottish Northern region and subpostmaster at Kiltarlity near Beauly, Inverness-shire, commented: "Overall, any new business like this is going to be good for the Post Office and for independent retailers as well, so it is more than welcome. Whether it will be workable in rural areas remains to be seen, but everybody is looking at ways of diversifying."Mr Wilson said each kiosk would cost Minoan £3000 to £4000 and if not viable could be moved elsewhere, while the group's current travel agency 'home-workers' brought in around £200,000 of business a year. Even 100 new outlets doing that amount of business would bring in £20m of revenue – more than the group's £15m turnover – which showed the potential. "We have been working on this for nearly nine months," he added.Minoan will operate the kiosks under the brand name Postcard Travel, with the first 50 likely to be in "market towns", and a further 50 added every three months. The footfall across the sub-post office network was more than 10 million customers a week, and most offices run with a newsagent, stationery or village shop business under the same roof, Minoan said, adding the venture should help sub-postmasters grow businesses and preserve local services. "We believe the initiative will also provide a welcome stimulus to the economy at a time when the high street generally is coming under increasing pressure, resulting in the closure of a wide range of retail services particularly within rural towns."Each unmanned kiosk will comprise two computer screens, one displaying holiday offers tailored to the area, the other offering a keyboard and touch screen allowing customers to browse or book. Mr Wilson said: "We are not asking sub-postmasters to become travel experts." Customers would have the option to follow up on their inquiry at home.He added: "Travel is an important part of our business and one of our key drivers of growth due to strong margins and development opportunities. "This agreement with the NFSP will enhance significantly our national position within the travel agency business."Mr Wilson said in August he was looking at three further acquisitions in the sector, one of them in Scotland. Last month, the group announced long-awaited progress in its planning application for a £20m development of its core land asset in Crete. Mr Wilson said all three acquisitions were ongoing, and another announcement on Crete was expected before Christmas. Minoan shares rose 0.5p to 10.75p.

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Minoan to install network of kiosks

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