While on gardening leave from his job at Dresdner Kleinwort a decade ago, Nick Newbury had two revelations. The first was that there was a gap in the market for a travel agency that catered to "cash rich, time poor" clients. The second was that "I didn't want still to be working in corporate finance in my 40s or 50s".
But Newbury realised he needed help. So he called in an old university friend and travel writer, Tom Barber, and football buddy Alastair Poulain. "Alastair was working in private equity at the time, and when I told him I had an offer that would make him enjoy waking up and going to work he said 'yes' before I could finish the sentence." They spent nearly two years between 2001 and 2003 researching destinations. "People never understand me when I say it, but going to these places was much more of a business exercise than a holiday." Newbury was determined never to offer a trip that hadn't been fully tested first.
Through a combination of savings and a small start-up loan from the bank the firm, Original Travel, had £100,000. But the trio lived frugally, "working out of my spare bedroom and keeping our day jobs". Initially the target was "big short breaks" for bankers who couldn't take long holidays, but were prepared to spend big to have a good time. Destinations had to be in the same time-zone or within five hours' fly-time, as "no one on a short break wants to spend ages on a plane or suffering from jetlag".
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The other selling point was an emphasis on the experience rather than the hotel. "We are in the luxury holiday market, so of course people want nice accommodation. But our focus is on how people feel when they are there." Newbury's City background also meant that he understood currency hedging, so "we became the first operator not to retrospectively change agreed prices when exchange rates moved".
The approach worked. After 18 months the firm boasted £1m in sales and had sent more than 1,000 people on holiday. "That might seem like a quick start, but you have to remember we spent a lot of time planning before the launch in 2003." Impressed, their bank urged the team to take on more debt to expand. "They felt that with more staff, sales would shoot through the roof. But I thought customer complaints probably would too." So Newbury turned down the offer.
A crucial turning point came in 2006, when the firm decided to branch out into long-haul holidays. It was "a break from the founding concept of the company, but it worked". Following the 2009 acquisition of Latin America and Africa specialists Tim Best, long-haul flights now make up the majority of sales. And despite an average booking cost of £10,000, Original Travel was not badly hit by the financial cri-sis in 2008/2009. "Things would have been better without it, but we are growing all the same." The firm's sales hit £7m in 2009 and it aims to send a record 4,500 people on holiday this year.
Despite the threats posed by weak sterling, volcanoes, economic turmoil and airline strikes, Newbury is bullish. "If we stay true to our name we will be fine. Our latest product combines music with travelling people will have the chance to re-live The Beatles' Sgt Pepper India trip."
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