JTG claims "overwhelming" backing for new strategy

JTG claims "overwhelming" backing for new strategy
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Jetset Travelworld received “overwhelming” backing to unite its retail networks under a single brand as it finally released details of a 10-month business review.

Chief executive Rob Gurney said consultation with key agents and suppliers had shown widespread support for the radical move to create a single entity.

The company today revealed that helloworld will be the new name for its retail business in a move that is likely to see the end of Harvey World Travel, Jetset, Travelworld and Travelscene.

But Gurney declined to categorically rule out that the existing brands will all be axed.

“No decision has been made on that,” he said.

He told Travel Today it will sit down with every agent and discuss their individual needs. But Gurney said he saw “no reason” why the majority of agents should not come on board and adopt one of three retail models on the table and become fully branded helloworld agents, an associate member or affiliate

Gurney predicted 1000 agents would either become fully branded or an associate, with 60% of those taking the full brand option.

“Clearly you need critical mass for it to be successful but that’s a number less than 600,” he said. “Based on the conversations we have had so far we think there will be strong take-up.”

Gurney that said that after the initial review, management spent six months “comprehensively testing and validating a wide range of strategic options with agents, suppliers and consumers to determine the most effective path for JTG’s success”.

What emerged was “overwhelming” preference for the creation of a single brand, he said.

Gurney said it mattered little what the new brand was called. What was more important was the value proposition that sat behind the brand and how the business “can bring the brand to life”.

“What is relevant is how consumers will respond and during research they were positive about the brand and value proposition,” he said.

Meanwhile, JTG said its EBITDAI for the year ending June is likely to be between $52 million and $54.5 million, an increase of 3%-8% on previous year.

The company's full year results will be released on August 27.

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