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Monster boss defends pricing strategy

THE boss of collapsed travel agency Monster Travel has rubbished claims that it was selling holidays for less than it bought them.

David Hawke, managing director of the Newcastle company which fell into the hands of administrators earlier this month, told the trade press that the claims were “patently untrue” and not to blame for the collapse of the firm.

Reacting to claims in a succession of comments on travelweekly.co.uk that the agency was selling for under net rates, managing director David Hawke claimed the company’s average margin was 10%.

He added: “Was our marketing strategy aggressive? Yes. But was it as aggressive as others? No way.

“Our business depended on Teletext and so we always played by its rules. If we hadn’t, its compliance team would have kicked us off.”

Monster collapsed on July 15 leaving 94 members of staff jobless with many claiming they were owed “thousands” in pay and commission.

Hawke blamed the volcanic ash cloud in April for the demise, saying debts of about £800,000 in the year ending February 28,2009, had been decreasing ever since.

“In 2009 we made a much smaller loss and this year, we were on track to break even. We were trading well until the volcano erupted,” Hawke said.

He also denied he had any other travel interests, despite the creation of Cheap Holidays Company, which was registered on May 24 with partner and Monster co-director Julie Gilmore as its sole director.

This was posted in Bdaily's Members' News section by Ruth Mitchell .