Fears of a recession may be working wonders on demand for the traditional British coach holiday judging by developments at one of Scotland's leading travel firms.
Fears of a recession may be working wonders on demand for the traditional British coach holiday judging by developments at one of Scotland's leading travel firms.
While major operators brace themselves for a slump in sales of overseas holidays David Urquhart said his eponymous business has been benefiting from a surge in demand as consumers look close to home for an affordable holiday.
"Yesterday (Wednesday) we had the largest number of bookings in the company's history," said Urquhart, who started the business in 1983.
"We just missed 2000 people bookings in one day."
Urquhart dismissed suggestions that the spike in bookings was largely attributable to the recent decline in the value of the pound sterling against currencies like the euro. This has pushed up the cost of holidaying in places like Spain.
However, noting the bleak outlook for the UK economy, he said the currency movements could probably provide a welcome boost for a firm that relies on UK coach holidays for about 70% of its trade.
"I don't think people who have been going to the Mediterranean will suddenly go to Rhyl but in current circumstances there is a possibility that people for a second or third holiday might consider a break in the UK. Maybe a year ago they might have said they were going to Spain."
Significantly, Urquhart said the latest growth in business was being driven by increased bookings from people in areas of south-east England that were hot spots of the UK economy during the credit-fuelled boom.
After working hard to build a customer base in areas like Essex, the East Kilbride- based firm now wins 65% of its business from south of the border.
Urquhart said the firm had also invested lots of effort in developing new products like "Strictly dancing" breaks.
The 63-year-old Urquhart said he expected conditions to be tough this year but thought his company was well-placed to confront the challenge.
"The credit crunch means we are being cautious and watching overheads carefully. We would like to be in a position of knowing that the banking crisis is resolved. But our commitment to value for money and the fact that our company is virtually debt free gives us confidence for the future," he said.
The fall in oil prices since July has been followed by a welcome reduction in the price of diesel - a significant overhead.
Nonetheless the long spell of very high prices before oil markets peaked will weigh on results for the financial year to April 30.
Accounts for the year to April 30, 2008, newly filed at Companies House, show operating profits fell to £20,132 from £348,964 in the previous year. Turnover was £30.6m, down from £31.9m.
Including interest receivable of £267,746 the company made pre-tax profits of £225,738. In the previous year the firm made pre-tax profits of £504,991, including interest receivable of £222,517.
In their report, the directors highlighted the effect of high oil prices and the competitive commercial environment.
The emoluments of the highest-paid director, assumed to be David Urquhart, fell to £244,232 from £254,725 the previous year. The company did not pay a dividend.
David Urquhart Travel also sells flights, cruise holidays and city breaks in cities in Continental Europe and Ireland.
