MyTravel rebrand rides cash woes

MyTravel has pledged to plough on with its large-scale rebranding programme, despite the financial uncertainty surrounding the company.

Richard Carrick, chief executive of MyTravel's global development division, told Marketing that there were no plans to halt the repainting of hundreds of Going Places shops and Airtours aircraft with the eight-month-old MyTravel brand. "It's not something we're considering," he said.

The company has so far rebranded around 100 of its 700 high-street shops, but still plans to rename all its stores as MyTravel by the new year.

MyTravel's founder and chairman, David Crossland, pulled out of this year's ABTA Convention at the eleventh hour after last week's scandal concerning a £50m accounts deficit. The travel company's share price has collapsed due to three profit warnings in five months.

Carrick said the company could not run an advertising campaign to reassure holiday-makers due to the current 'closed period' in the run-up to the publication of its full-year results on November 26.

MyTravel is however making a huge public relations effort to bring onside sceptical journalists and the City.

Speaking to reporters at the ABTA Convention, Carrick said MyTravel was "paying the penalty for being too honest" with shareholders.

"We want our books to be whiter than white, but we haven't managed City expectations well enough," he admitted.

UK chief executive Duncan Wilson, also attending the convention, said MyTravel was still "making significant amounts of money".

"At the end of this year, our annus horribilis, we still made around £1m profit each week. We have substantial net assets and trading is as buoyant as it has ever been. We are 40% ahead of expectations for summer 2003," said Wilson.

Analysts remain concerned that the bad news surrounding MyTravel's brand will prompt holidaymakers to cancel their bookings or simply not choose its holidays in the peak booking season, which is fast approaching.

This could lead to a cash-flow crisis and the company's ultimate collapse.

Discussion

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus
Brand Republic Jobs

subscribe now

Latest

Waitrose boosts content strategy with 'Weekend Kitchen with Waitrose' C4 tie-up
Hottest virals: Cute puppies star in Pedigree ad, plus Idris Elba and Fruyo
Amnesty International burns candles to illuminate new hope
Toyota achieves the impossible by calming angry Roman drivers
Tom of Finland's 'homoerotic' drawings made into stamps
YouTube reveals user habits to appeal to 'older' marketers
Ex-M&S marketing chief Steven Sharp consulting at WPP
Wolff Olins reveals new CEO after Apple poaches Karl Heiselman
Glasgow offers £30,000 prize to best digital idea for 2014 Commonwealth Games
Google's revenues surge but shares drop as it grapples with transition to mobile
Facebook beats Twitter to most 'marketing friendly' social media site crown, says DMA
Fableists believe children like Finn should be outdoors enjoying life
Homebase, Baileys and Camelot join the line-up at Media360
MasterCard renews Rugby World Cup sponsorship to push cashless message
Lynx unleashes £9m 'Peace invasion' campaign
Social Brands 100 Youth: Pizza Hut most social youth brand in UK
Cheryl Cole is wild and arresting in new L'Oreal work
Morrisons told not to show alcohol ads during YouTube nursery rhymes
O2 head of brand Shadi Halliwell departs after 23 years at company in restructure
Tesco hit by further sales decline as it turns to digital Clubcard and social network
Branding guru Wally Olins dies aged 83
Duracell short film captures epic Transatlantic voyage
Ash runs Tinder experiment to show smokers are less desirable to opposite sex
British Airways teams up with Gerry Cottle Jnr for summer of rooftop film screenings
Arklu says 'girls can be superheroes too' with doll design competition
Coke enters squash market with Oasis Mighty Drops
Virgin Galactic signs up Land Rover as space flight sponsor
Motorola marketer Andrew Morley departs as Google gears up for sale to Lenovo
US Airways apologises after tweeting obscene image at a customer
Mumsnet admits users' emails and passwords accessed via Heartbleed bug