Competition in the travel market will intensify with the arrival in Dublin of Direct Holidays, a Scottish-based tour operator which sells package holidays by telephone as well as at its travel shop.
The company will initially employ 30 staff at its travel centre in Talbot Street. Employment in the first year could rise to about 50 people, according to managing director, Mr Duncan Wilson.
The company expects to sell about 56,000 holidays out of Ireland in its first year and is targeting the existing market as well as new holidaymakers. It estimates that the Irish market will grow by about 8 per cent a year.
Direct, the second direct selling Scottish group to come into the Irish market within days following the arrival of Bank of Scotland offering low cost mortgages, will invest about £40 million (€51 million) over four years to develop its Irish operation.
In addition to new computer systems, there will be substantial expenditure on marketing.
Direct is a tour operator, putting together its own package deals which it sells to the public. It claims that by removing travel agents and their commission from the selling chain, it can make savings which it can pass on to the public.
Mr Wilson says the minimum commission is about 10 per cent "so on a like-for-like basis our holidays should be 10 per cent cheaper". Direct offers free travel insurance and guaranteed free child places for all holidays booked on or before September 30th as an introductory offer. It plans to operate to 10 destinations initially from Dublin Airport, adding departure airports, destinations and products as the business grows. The telesales office will be open from 8.30 a.m. to 8 p.m. from Monday to Friday, from 9 a.m. to 5 a.m. on Saturdays and from 10 a.m. to 5 p.m. on Sunday.
Mr Wilson said his operation would "bring a new dynamic to the Irish travel market". He was confident the company could replicate in the Irish market its strong growth in the UK. Direct's research indicated year-on-year growth of about 8 per cent in the all-inclusive Irish package holiday market, he said.
But he stressed that Direct was not a "cut-price" operation.
"Our holidays cost less simply because we cut out the travel agent and its commission and we pass this saving on to the public. The price is not the only benefit when booking direct; because we sell only our own holidays we can provide the customer with expert advice, unlike a travel agent who often has to grapple with lots of different brochures, he said.
Set up in 1991 in Scotland, Direct Holidays has expanded rapidly. This year the company expects to carry 350,000 passengers and plans to carry 500,000 passengers next year. In July 1998 Direct Holidays was acquired by the publicly quoted company Airtours plc which is the largest holiday company in the world. Direct is understood to be the fastest growing tour company in the UK.
