The Destinations Group, owner of Kosmar, plans to expand its business with strategic acquisitions and increased marketing.
- Kosmar aims to enhance growth by seeking investors rather than relying solely on organic expansion.
- A 248% surge in annual turnover indicates Kosmar’s operational efficiency and successful cost management strategies.
- Kosmar’s strategic realignment under a unified brand improved market position and operational streamlining.
- Plans for new ventures in cruises and technology highlight Kosmar’s forward-thinking approach to the travel market.
The Destinations Group, which owns Kosmar, has outlined plans for significant expansion through strategic acquisitions and increased marketing efforts. The company is actively seeking investors to accelerate this growth, choosing not to depend solely on organic means. This comes in light of Kosmar reporting a substantial increase in annual turnover, up by 248%, and a notable 126% rise in operating profit for the financial year ending 31 January 2024. Despite not disclosing specific figures due to ‘strategic confidentiality’, the company’s performance reflects a focus on operational efficiency and cost management.
A ‘decisive move’ was made during the year to unify Kosmar with the homeworking arm, Destinations Desired, under a singular brand. This strategic realignment by the company, based in Sheffield, has not only streamlined operations but also bolstered its market position. Destinations Desired expanded its network of tailor-made travel experts, with each franchise contributing an increase in annual turnover between £250,000 and £500,000.
Furthermore, Kosmar has laid the groundwork for launching two new ventures. Cruise Exclusive, which will specialise in curated cruise experiences, is set to launch in 2024-25. Another initiative, Travelix, will provide technology solutions, such as CRM, booking systems, and website solutions to travel agencies and niche tour operators. These ventures indicate a forward-thinking approach and diversification strategy.
Managing Director Jay Worsnop-Hesford indicated the company’s robust position, seeing ‘significant opportunities to accelerate our expansion and market reach with the right investment.’ He emphasised the uniqueness of their position due to the diversification strategy underscored by membership in the Travel Trust Association and adherence to the ATOL scheme. This, according to Worsnop-Hesford, enables navigation and success in the complex global travel environment.
Kosmar significantly boosted its tour operations last year by adding more than 6,000 hotels and 3,000 villas to its portfolio. This expansion, paired with acquiring their first ATOL license, ensures financial protection and peace of mind for clients. Despite global uncertainties, Kosmar has observed a consumer shift towards western destinations. Their agile strategy and strategic partnerships have positioned them well for future scalability, maintaining platform stability even in a volatile environment.
Kosmar’s strategic expansion plans and investor search position it uniquely for growth in the global travel market.
