Fred Olsen Travel is poised for significant growth, targeting a £90 million turnover this year. This strategic push marks a crucial phase in their expansion journey.
The company, comprising a robust network of high street shops and franchisees, is positioning itself to capture market opportunities and boost its commercial standing.
Expansion Plans
Fred Olsen Travel is aggressively pursuing expansion within its retail division. The company plans to open new stores and increase its franchisee network. Currently, there are 19 high street shops and 57 franchisees operating under the Go Cruise & Travel brand, with an additional nine licensees. This planned expansion indicates a strategic move to enhance market presence and drive revenue growth.
Paul Hardwick, retail director, announced these goals at the company’s annual conference. He detailed the opening of a 20th high-street store in Ringwood, Hampshire, which is positioned as a concept store. The development of concept shops forms a key part of their growth strategy, along with the introduction of the final five of their planned 25 shops over the next 18 months.
Strategic Growth Initiatives
The company aims to sustain turnover targets through the addition of new franchisees and expanding its store footprint. Fred Olsen Travel has already achieved a 14% growth compared to last year. This growth trajectory is recognised as a crucial element in their strategy to become more commercial and competitive.
Hardwick stated, “We have some ambitious growth targets.” The company seeks to close the gap with last year as they emerge from peak trading periods. Their franchise model is being leveraged to attract agents that align with their business philosophy.
Historic Growth and Market Position
Fred Olsen Travel has demonstrated remarkable growth over the past decade, evolving from a modest £13 million turnover with eight shops to a forecasted £90 million. This expansion is underpinned by strategic acquisitions and new market entries, notably in Dorset, Hampshire, and Sussex.
With tangible growth since its early days, the company has made significant inroads into new markets. This includes a variety of acquisitions that have bolstered its position and facilitated ambitious turnover goals.
Future Projections and Market Dynamics
Looking beyond 2025, growth will be somewhat market-led, according to group managing director Steve Williams. He notes that should current buoyant market conditions persist, the company intends to continue its expansion.
The company is positioning itself to adapt to market demands and opportunities as they arise. Potential acquisitions are being considered if they align with the company’s strategic objectives. Williams remarked, “If it’s as buoyant as it looks now, then we would like to continue growing.”
Franchise Development and Brand Building
The Go Cruise and Travel franchise is a focal point of the growth strategy, aiming to scale the business framework. Hardwick emphasised the importance of integrating more agents that fit the company’s existing business model. Five new franchisees have been incorporated this year, with ambitions to add four more by year-end.
The focus on building the Go Cruise brand plays a central role in scaling efforts. Fred Olsen Travel is actively seeking strategies that enhance brand recognition and align with commercial objectives. This involves building a robust network of franchisees who share the company’s goals.
Market-Led Growth Prospects
Fred Olsen Travel’s approach is to capitalise on current market strengths and trends. This includes looking at further acquisitions and enhancing commercial competitiveness. The company is clear in its intent to scale efficiently while remaining open to opportunities that may present themselves.
Their proactive approach ensures that the company remains responsive to market changes. The commitment to sustainable growth and profitability drives their strategy, aligning with future ambitions.
Key Takeaways
Fred Olsen Travel’s ambitious turnover targets reflect a comprehensive growth strategy driven by expansion, franchise development, and market responsiveness.
Fred Olsen Travel is executing a multi-faceted strategy focused on expansion and market adaptation, underpinned by its robust growth targets.
The company’s forward-thinking approach and strategic initiatives underscore its commitment to achieving remarkable growth in the coming years.
