Lowcosttravel eyes AIM as package sales slump

Hogarth has been drafted in by an online travel firm taking advantage of the decline of the traditional package holiday.

Lowcosttravel is looking at a possible AIM flotation of around £30m, only two years after launching. It will be backed with around £600,000 from former Club 18-30 rep Paul Evans.

Hogarth, which was hired without a pitch, will seek to capitalise on the unsteady package holiday market by positioning Lowcosttravel as an alternative investment. Instead of buying groups of beds at destinations for its employees to sell, the firm buys on demand. Hogarth will highlight the comparative lack of risk involved in this strategy.

Hogarth managing partner John Olsen heads the account, alongside associate director Fiona Noblett, reporting to MD Evans.

Package holidays to Britons' favourite destination, Spain, are 4.4 per cent down for the first seven months this year, despite a rise in tourist numbers by over five per cent, according to Frontier Tourist Movements.

This month operators Tapestry Holidays and Travel World International ceased trading, leaving holidaymakers stranded. Meanwhile, a recent leaked memo from Thomas Cook chief executive Manny Fontenla-Novoa revealed its sales figures were ‘way below' expectations.

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