Tui Travel set for ‘phenomenal’ technological change

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.

Virgin Holidays opens first outlets in Sainsbury’s

Virgin Holidays opens first outlets in Sainsbury’s

Oct 04, 2011 07:00AM GMT

Virgin Holidays has opened its first ‘concession stores’ in two Sainsbury’s supermarkets and plans to open more over the next five months.

The concessions – located in Sainsbury’s in Merton High Street, south London and Cromwell Road, Kensington – are the latest stage of the company’s growing retail network, which is expected to reach 100 shops by March 2012.

The operator currently has 77 retail outlets across the UK, which represents an increase of 50% since this time last year.

It plans to increase this by a further 53 stores by next March, and has recently also opened limited–duration pop up shops in Dorking and Alton.

Almost 20,000 customers have booked using one of its shops in the past 12 months, the company claims.

Touch screen technology and multi-media displays are employed in each Sainsbury’s concession to help users research holiday options, alongside a range of brochures.

A dedicated area for children is included to allow parents discuss their choices with travel staff.

Virgin Holidays customer director Mark Anderson said: “Our research has shown us that there is a real appetite amongst customers for face-to-face contact with someone when booking their holiday.

“Our concession stores bring the Virgin Holidays brand to life like never before, and give shoppers the chance to buy their dream holiday in an environment they’re comfortable in – as well as giving them ample opportunity to discuss options, ask questions and consider their choices before purchasing.”

Sainsbury assets and estates director Matt Birch added: “We are always looking for new ways to meet the needs of our customers so we are delighted that Virgin Holidays is the latest exciting brand to open a concession in our stores.

“Like Sainsbury’s colleagues, Virgin Holiday’s travel experts have a passion for great customer service so I have no doubt that these concessions will be a real hit with our customers over the coming months.”

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

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.”