Tui Travel set for ‘phenomenal’ technological change

Posted on 10 October, 2011 by Spacejunkie2

Tui Travel set for ‘phenomenal’ technological change

07 October 2011

Tui Travel will push through “phenomenal” technological change as it bids to become an online-driven business, chief executive Peter Long told delegates at Abta’s Travel Convention.

Speaking in Palma while interviewing Iberostar boss Miguel Fluxa, Long described the online arena as fascinating, and warned convention attendees to ignore online “at your peril”.

He said: “We have a clear view of what we need to do at Tui and the journey involved. The pace of technological change we are going to see is phenomenal. We want to be an online driven business and have a long way to go.”

Long also talked about the importance of gaining new customers outside its traditional markets:

“Geographical expansion is important to us given the volume of new consumers in emerging markets.”

Fluxa said it was as important as ever for tour operators and hoteliers to work closely together and to avoid online business damaging those relationships.

He revealed that of the growing online business Iberostar gets just 20% is from consumers. The rest is B2B, for example from agents dynamic packaging with low cost flights.

Fluxa also pointed out that passengers on low cost flights are not necessarily low quality clients in terms of spend – many are trying to channel as much money as possible into the quality of accommodation.

And said quality of service would improve as those who work in hotels have realised, more than ever due to difficult economic times, that the guests are the key to their livelihoods.

Online discounts ‘blocked’ agents from selling Kuoni, admits new MD

Posted on 7 October, 2011 by Spacejunkie2

Online discounts ‘blocked’ agents from selling Kuoni, admits new MD

Oct 05, 2011 07:50AM GMT

Kuoni’s online discount of 5% was the one remaining “blockage” for agents working with the operator, according to new managing director Derek Jones.

Jones made the comments following the operator’s decision to phase out online discounting from the end of this month.

Admitting that the issue of online discounting was “deep-rooted in the trade”, he said it was something he wanted to immediately address once he started his new role this week.

“It’s been under review for some time because it’s all about being multiple-channelled and any tension between those channels is a problem if we are trying to say that Kuoni is all about great service.

“Customers find it jarring if they go into a shop having researched online and then have to effectively start negotiating on price. It’s plainly ridiculous to have agents having to compete with our other distribution channels.”

Jones said the online discounts that had been available on Kuoni’s website had made agents cautious about using the site at all – even the special agents’ section.

“We’ve done so much with training and with working with so many good independent agents through Tipto and Travel Weekly’s Aspire luxury travel club but the online discount was the one thing that kept standing in the way. So as hard as we worked on all those other things for agents, we were never going to get the full benefit until we ditched it.”

Jones revealed Kuoni was adding new functionality to its trade site that would benefit agents.

“We have a dynamic calendar that gives agents the latest price on any date, but it will now also show them the availability left and also if there are any Kuoni Plus special deals to be had. It’s this kind of thing many agents have been missing out on because of the blockage caused by our online discount and they will hopefully now feel comfortable using our site.”

Jones said agents would probably get a chance to convert more sales from the move.

“Having looked at the mechanics, we only need to deliver a small increase in conversion from out independent partners to make it all work.”

Travel agents welcomed the move to drop the online discount, calling it “the best news the trade’s had in years”. They urged other operators such as Hayes & Jarvis and Virgin Holidays to follow suit.

Nick McKay, director of Clapham-based Travel Designers, said: “This will start to send out the message it’s not always about price.”

Dave Criddle Travel homeworker Lynne Fuell said: “I would like to see other larger operators doing the same thing.”

But rival Hayes & Jarvis, owned by Tui Travel, ruled out a similar move. Clare Tobin, managing director of Tui Travel’s specialist businesses, said: “The trade has our best offers in the market anyway.”

No enhanced redundancy package for Co-op travel staff

Posted on 7 October, 2011 by Spacejunkie2

No enhanced redundancy package for Co-op travel staff

Oct 05, 2011 07:45AM GMT

The Co-operative Group has refused to give staff in the travel division an enhanced redundancy package being offered to employees in other parts of the business, despite appeals from unions and staff.

As part of a management integration programme the group is providing staff made redundant from the financial services and retail divisions with a topped-up package of statutory redundancy multiplied by three, with an extra eight weeks.

However, despite protests from the unions, the group has said it would be “inappropriate” to extend the offer to travel staff, who will transfer employment to Thomas Cook under the terms of the joint venture. The merger was officially completed on Tuesday.

The Co-op has yet to reveal how many travel staff will lose their jobs, but some said the decision showed the company was “washing its hands” of travel.

One employee said: “From a company that boasts about its ethical and moral values and how it treats its staff, it is going in the face of that to discriminate against the travel staff. It is washing its hands of travel in a joint venture that will save millions.”

Trade unions the National Association of Co-operative Officials (Naco) and Usdaw, fought the decision at a meeting with Co-operative Group chief executive Peter Marks on September 29. Marks is also a non-executive director of the travel joint venture.

Neil Buist, general secretary of Naco, said: “While we have made every effort to secure enhanced redundancy terms for those affected by the joint venture, unfortunately the group chief executive has confirmed the enhanced terms will not be extended.”

A spokesman for the Co-operative Group said: “The group chief executive has listened to the submissions but has determined that it would not be appropriate in the case of employees joining the new joint venture to introduce a discretionary ‘top-up’ to our present terms.”