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Saudi-Owned Travel Group Cuts Jobs Amid Pandemic Challenges

saudi owned travel group cuts jobs amid pandemic challenges business manchester

The Portman Travel Group faced significant operational and financial challenges due to the Covid-19 pandemic, resulting in substantial job losses and revenue declines.

The Portman Travel Group, headquartered in Chester, faced substantial difficulties due to the Covid-19 pandemic, impacting both its operational capacity and financial health. More than 200 jobs were cut as the company navigated through reduced demand and travel restrictions. The workforce decreased from 784 to 551 employees during 2021. “The Covid-19 pandemic has disrupted, and continues to disrupt, the travel industry both nationally and internationally,” stated the board.

Financially, the group’s revenue fell by 9.6%, dropping from £44.6 million to £40.3 million. Despite a decrease in revenue, the company managed to reduce its pre-tax losses, which improved from £17.8 million in 2020 to £8.3 million in 2021. This was achieved through various cost-cutting measures and strategic adaptations to the challenging business environment.

The Portman Travel Group, owned by Seera Holding Group, a Saudi-based company worth approximately £1 billion, prioritised the health and safety of its employees. Remote working arrangements and the utilisation of the UK’s Coronavirus Job Retention Scheme were among the key steps taken to protect staff. These measures were essential in maintaining operations under constrained conditions.

However, the group did not solely focus on survival. In 2022, Destination Sport, a subsidiary, acquired 50% of Sweetspot Travel for £500,000 and a 35% share in Emprise Group for £1.7 million. Additionally, it purchased Marathon Tours in the US for $7.7 million. These acquisitions highlight the group’s strategy to expand and strengthen its portfolio, particularly in sports travel management.

Moreover, the company encompasses a variety of travel-related businesses, including luxury holiday operators like Elegant Resorts and If Only Holidays, and business travel entities such as Charity Travel and Portman Travel (Ireland). The group also has a significant international presence with operations in France, Austria, Switzerland, Denmark, Spain, Italy, and Germany.

Despite facing severe challenges due to the pandemic, The Portman Travel Group has taken significant steps to mitigate losses and strategically strengthen its position in the market.

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