The Global Recession has Cost UK Tour Operators GBP2.1 Billion

LONDON, December 9 - The recession has cost UK Tour Operators GBP2.1 billion in lost profit in
the last year according to new research by market analysts Plimsoll.

David Pattison, senior analyst and author of the Plimsoll Analysis - Tour
Operators, says "The recession has hit the sector hard with more than half of
the companies analysed in our new report making less profit than they were a
year before. The bill in lost profits stands at GBP2.1 billion."

When pressed for a reason for this collapse in the bottom line of
companies throughout the market, Pattison suggests, "With demand so subdued
and the resultant competition, many companies are unable to charge the prices
they need to make healthy profit margins. In the absence of pricing power
many companies will have to make painful but necessary cutbacks in the next
12 month."

However, the burden of lost profit is not being shared equally as
Pattison explains, "570 companies have bore the brunt of the downturn. These
companies have seen their profit margins decimated and in the absence of a
big upturn in demand will have to cut their cloth accordingly. Watch out for
further job losses and closures at these companies as they look to claw
themselves back to profit next year. If they fail to act quickly they could
find themselves running out of cash."

On the other hand, there are still companies getting it right in spite of
it all, "Amazingly, there are 233 companies that have maintained or increased
their profit margins in the last year. All things considered that's a pretty
good achievement. While some of these companies made cut backs to match their
lower sales expectations others have managed the Holy Grail - they have grown
their business and increased their profit margins in a recession. Those
companies prove that an efficient business selling the right product to the
right market can still succeed in the current climate."

The new Plimsoll Industry Analysis - Tour Operators gives an instant
performance rating on the top 1000 companies in the market. Each company has
been rated as Strong, Good, Mediocre, Caution or Danger according to their
latest performance. A graphical and written analysis will tell you which
companies are in trouble and who is getting it right.

    Christopher Evans
    Plimsoll Publishing Ltd
    Scotswood House
    Teesdale South
    Stockton
    TS17 6SB
    Tel: +44(0)1642-626400
    Fax: +44(0)1642-626410
    Email: c.evans@plimsoll.co.uk

    Web: www.plimsoll.co.uk

Christopher Evans, Plimsoll Publishing Ltd, Tel: +44(0)1642-626400, Fax: +44(0)1642-626410, Email: c.evans at plimsoll.co.uk