Corporate travel is a major provider of travel services in Noth America, Australia & NZ, Europe & Asia, and they’ve had a phenomenal history of growth. However, in more recent times, they won a very lucrative contract to house Asylum seekers in the UK, and they are having some issues with this politically charged area, where the landscape can change quickly. So, while CTD have a very strong travel business, their expansion here creates a more complex operation, with a greater number of variables.
This is a major issue in the UK, with a reported 14,058 people crossing the Channel in 2024 as of the 10th of July, looking for the attractive option on offer in the UK. The numbers keep growing, and the UK is bursting at the seams – taxpayers are fuming at having to stump up for the bills. Sir Keir Starmer has confirmed Labour would resume processing asylum applications for people who have previously arrived in the UK illegally, it doesn’t sound too bad for CTD until we consider Labour rhetoric during the election:
- Its election manifesto did not commit explicitly to repealing the Illegal Migration Act. Still, it said “unworkable laws” enacted by the Tories had left thousands of people in taxpayer-funded hotels in a “perma-backlog” of claims.
- The “taxpayer-funded” side of the equation will be scrutinised moving forward, and this is where these risks lie for CTD.
We exited CTD in May due to concerns about the UK election and future policy changes. The uncertainty of the result has been lifted, but policy changes remain likely, leaving the stock friendless.
MM is neutral CTD
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