With the inbound tourism market continuing to bounce back, business for central London-based Anderson Travel Group is looking healthy. But as Director Mark Anderson notes, things would be even better if there was clarity from government
As the steady stream of open top sightseeing buses turn into Tower Bridge Road from Tooley Street, the top decks come alive as their occupants, camera phones at the ready, all clamour for their first sight of the imposing Tower Bridge. Celebrating its 130th anniversary this June since opening in 1894, the bridge has weathered many storms.
But as the buses head for the southern entrance to the bridge, it seems unlikely that anyone will notice the offices of another London institution on the right.
Anderson Travel Group (ATG), was established by Mark Anderson in 1988. Although somewhat younger than the famous bridge, in the last few years, ATG has weathered more than a few storms of its own.
“2023 was our best year ever,” he says, as we meet in late January. “We weren’t sure whether the return after the COVID-19 pandemic would be a trickle or a flood. It’s turned out to be a flood!”
Mark notes that in 2022, demand had been great, but that with the limited availability of drivers, and vehicles, capacity was curtailed. But now, for a business that has been built on providing tour products and coach hire for inbound visitors to the UK, and with visitor numbers from North America, South America and mainland Europe really bouncing back, 2024 looks set to be even better than 2023.
“There’s no sign of things levelling out yet,” says Mark. “The Chinese and Japanese still seem reticent to travel in the numbers they used to. But I see that changing. We have the opportunity to prepare and to ensure we’re ready. It’s a good position to be in.”
Flip-flop approachMark notes that circumstances in London have come together to present a perfect storm.
“Sadly, we’ve seen a number of operators closing down,” he says, “so across the London coach hire market we don’t have the same level of competition and there’s a reduced capacity able to manage demand. That has meant that operators with drivers, and vehicles, have been able to respond. I’m also pleased to see stronger enforcement by the Traffic Commissioner. That’s making it harder to enter the industry. Combining that with what I describe as government’s flip-flop approach to coaches means that anyone would be stupid to get involved in the industry at the moment.”
Mark’s views of the uncertainty surrounding government initiatives will likely resonate with other operators.
“I have zero faith in politicians,” he says. “There’s little evidence they understand coaching. Consequently, I battle on, ignoring them as much as I possibly can. PSVAR is a good example. I look at what other operators have done, spending £28,000 on making their vehicles PSVAR-compliant, only to see the legislation postponed. I fully support Peter Bradley, Managing Director of the UK Coach Operators Association (UKCOA), as he, and the other trade bodies, move to find a compromise.
“There needs to be a greater understanding of need. I can see why some operators are looking at retrofitting. It can be a sensible move financially to ensure you have the fleet make-up you need. But to me, retrofitting a coach is a bit like an IKEA wardrobe after you’ve moved house. When you put the whole thing together again, it’s never quite the same!”
Euro VI derogation
On the topic of electric vehicle (EV) operation, Mark is clear.
“I’m not actively considering EV at the moment,” he says. “Our Euro VI coaches are remarkably clean in terms of emissions. You’re paying something like £100k more for an EV, plus the infrastructure costs of installing a power supply. Why would we do that at the moment? For us it would be better for government to offer a derogation for Euro VI vehicles. I feel that EV has a touch of the Hans Christian Andersen story, ‘The Emperor’s New Clothes’. Government has tied its flag to the EV mast, but it’s inconsistent. We will wait. We’re not inclined to be a guinea pig!”
A spot of good luck
ATG has two parts. Anderson Tours focuses on providing a programme of own product day trips from London to destinations including Stratford-upon-Avon, Stonehenge, Isle of Wight, Bath and Windsor. Anderson Tours also focuses on private groups, including offering a bespoke itinerary planning service. Anderson Travel focuses on the coach hire side of things, including working with tour operators.
But when lockdown arrived in March 2020, everything stopped.
“2020 to 2022 was my hardest ever experience in the industry,” says Mark. “Looking back, it was a combination of hard work, sound financial planning, and to be honest, some good luck, that got us through.”
That luck came in two parts. The first was a contract to carry nurses arriving at Heathrow Airport to hospitals around the country. The second was a home to school (H2S) contract that popped up in September 2020.
“We hadn’t done much H2S up to that point,” says Mark. “Now I realise that was a mistake. If you can add in playing fields and swimming baths work during the day you have effective vehicle and driver utilisation and regular income. It was the H2S work that probably saved the day.”
A lack of support
Mark expresses clear frustration with the support the business received from both government and his local authority.
“At the time, our old depot out at Slough received funding from the local council. Here in Southwark, our local Borough gave nothing. Fortunately, our landlords understood the situation, and our bank overdraft was extended. Thanks to the schools and NHS contracts they could see money coming in. We made a stand against Southwark but were taken to court for non-payment of rates. That has left a sour relationship with the Borough. The council has never recognised its lack of support. Another part of the council came to us asking if we would provide a free coach for a charity event in the Borough. We said no!”
Operating out of central London brings its own challenges of course.
“We receive around 250 Penalty Charge Notices (PCN) each year,” explains Mark. “They’re mostly for infringements relating to picking up and setting down. We appeal most of them but the Parking Appeals Tribunal doesn’t look at the back story. Many of our tickets are thrown out, but it all takes time to manage.
“I do need to praise Westminster City Council though. It doesn’t see PCNs as a profit centre and it’s much more active in its traffic management. Coach drivers from out of town do need to stop their engines idling when they park in Tothill Street in Westminster though! Our main adversary is Transport for London (TfL). That organisation needs a seed change. It needs to start seeing coach as part of the solution, not the problem.”
Coach driver training boost
So, the future? In November 2023 a new depot with a 10-vehicle allocation was opened near Heathrow, having moved from a cramped site at Slough. The Tower Bridge Road depot has an allocation of 25, shoehorned into a cosy site under a railway viaduct.
The new Coach Driver Academy, a joint initiative with the Department for Work and Pensions, and trialled in Croydon, South London, in February 2023, has seen a second tranche of 10 applicants go forward for coach driver training. There’s now interest from UKCOA members in the West Midlands to do something there.
But what about Mark. Has he had enough?
“I’ve been in the industry for 40 years,” he says. “But I’m really concerned about the lack of joined-up thinking across government. We need some clear thinking and a clear pathway forward. My wife Hannah and I are thinking about the future. We have four daughters, but they all have successful careers elsewhere. So, where do we go? It’s possible I might sell the business if the right offer came along. But sitting here today, with 2024 looking promising, and having achieved this without any state help, I’m feeling quietly satisfied. No, it’s actually better than that. It’s been a minor miracle!”
