30 years and Hays Travel is flying ever higher
Feb 11 2010 By Christopher Knox, The Journal
It is just 30 years since the region’s biggest travel agency started life in a clothing shop. Christopher Knox looks back.
His conviction bore fruit two years later when the business grew successful enough to open a second store in Sunderland, which is where its head office is now based.
The economic problems of the 1970s, which had badly affected the travel industry, were beginning to dissipate and a new sense of adventure was being created among the public by the opening of additional flight paths and a realisation among countries that they could rebuild their bruised economies through tourism.
Realising this, Mr Hays was fortunate enough to receive further help from his family when his father, a former joiner at Seaham’s coal mine, agreed to refurbish the new store to help get it open as quickly as possible.
Mr Hays said: "It was really important to get a store out on the high street back in those days. Now, the market is dominated with online bookings and call centres, but back then the high street was where it was at."
The head office, which has been expanded several times, now employs 250 staff, which is a massive jump from the two strong-workforce that used to run the firm’s operations back in 1982.
With holidaymakers flocking to hot spots such as Spain and Greece in their droves during the early 1980s, the company was able to sell enough holidays by 1986 to hit a turnover of £1m.
Despite the decline of the North East’s traditional labour force, the growth of overseas travel continued, with the firm achieving sales of £7.5m by 1990, and then £19m in 1995.
This was helped by a period of intense merger and acquisition activity between some of the industry’s biggest holiday firms, such as Thomas Cook and Thomson, which saw the routes available to British holidaymakers quadruple overnight.
As a independent travel agent, this benefited Hays hugely, with its sales going on to reach £85m in 2000 as customers took advantage of the exotic destinations on offer.
"Everything just took off at the end of the 1990s, with more people being able to go abroad for their holidays," Mr Hays said.
Another decision which has helped to turn the business into a major player was the creation of Hays Travel Independence Group in 1995.
This allows smaller agents to benefit from the Hays’ support and internal infrastructure, including IT support, but maintain their independence.
The group was created after an old school friend approached Mr Hays after his Travel Studio business fell into difficulty. The group now has 150 members and has allowed Hays to prop up its continued growth my taking a cut from each purchase.
Hays has also benefited in recent years from its decision to set up call centres in Newcastle, Sunderland and Stockton, as well as allowing homeworking for 300 of its staff.
"Mr Hays says: "By listening to suggestions we have been able to provide our dedicated workers with the conditions they need to stay with us. However, our shops mean just as much to us as our over-the-phone business."
The company, which is now aiming for a £500m turnover by next year is now looking to continue its rapid growth over the next 30 years, and last year set up Hays Beds and Hays Transfers to help it increase its market share in the hotel industry as well as become more of a physical presence at airports around the world.
Mr Hays says: "I might not be here by 2040, but I would like to think that the business will still be thriving."
