First Choice has acquired Quark Expeditions and KSA Events. Quark Expeditions focuses exclusively on polar cruises and is the world leader in expeditions to the polar region. They are also the only company that offers ice-breaker trips, offering 11-20 day holidays at £300 - £600 per person, per day. First Choice hopes that the move will help to drive up profit margins, as Polar expeditions are, according to a First Choice statement, a rapidly expanding segment of the travel market with room for strong growth. KSA events operate across the North American student travel sector and First Choice confirmed that organised high school events were also in high growth.
This move from First Choice rounds off an astonishing sequence of events, as in this financial year alone, First Choice has completed £163.2 million worth of acquisitions. This news comes shortly after confirmation of the imminent merger with German rival TUI, owner of Thomson Holidays, which will create a company with 7.2 million customers and an estimated market value of more than £3 billion.
First Choice has also expanded its online services in an attempt to revive waning interest in high street bookings and package holidays. First Choice owned Hotelbeds, Bedsonline and Hotelopia have experienced revenue increases of 46%, as well as a 35% increase in its total customer base. The integration of Laterooms.com has also been progressing well, as First Choice reports an increase in revenue of 79%.
Summer 2007 performance for First Choice is in line with previous forecasts, as sales rise 2% on volumes down 2%. Long-haul destinations such as Costa Rica, Cuba, Mexico and the Dominican Republic are driving growth but First Choice has confirmed its short-haul market presence has been reduced.
