Job loss fear as travel stores shut

It is the latest round of closures in the sector after rival Thomas Cook announced the loss of 150 shops and six offices last year, following its merger with Airtours operator MyTravel.

TUI Travel is making a similar move after its creation through the August combination of First Choice and the travel arm of German firm TUI.

The company did not disclose how many jobs would be the lost through the store closures, which it said involved less than 10% of its 1,091-strong estate, made up of 585 Thomson sites and 386 First Choice outlets. There are 28 towns and cities where the company has three or more shops.

Luton-based TUI has already said it will close offices at Crawley, in West Sussex, and Manchester as it looks for cost savings of £150 million a year, an increase of £50 million on the figure forecast at the merger.

Gerry Doherty, general secretary of the TSSA travel union, warned that the closures could cost up to 1,000 jobs and result in less competition on the high street.

He said: "We warned last year that this merger would mean less choice for consumers and job losses for our members. Sadly this has come to pass. Britain's high street is now dominated by just two travel giants - TUI and Thomas Cook. We fear more closures as the two firms maximise profits and pressure intensifies from internet holiday bookings."

TUI Travel pledged to retain the Thomson and First Choice brands but said they would be targeted at different market segments. First Choice would build on its strength with younger, more family oriented customers, while Thomson would have a product offering more geared towards adults.

Marketing director Tim Williamson said: "The new focus for these brands does not mean that First Choice won't sell adult-only holidays and Thomson won't sell to families. We see the changes taking place as a gradual shift over the next few years."

The cuts follow a 100-day review led by chief executive Peter Long, who previously ran the First Choice business. He reported healthy trading figures today, with sales for the winter season 3% higher and summer trading up 8% on a year earlier.