Tag Archives: Holidays

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

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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

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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.”

Tesco ‘using travel for loyalty, not profit’

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TTC 2011: Tesco ‘using travel for loyalty, not profit’

Oct 05, 2011 11:00AM GMT

Tesco says it has no intention of making money from travel but could enter the deals market as it seeks to use the sector to help it drive up customer loyalty.

Ian Simpkins, the grocery giant’s Clubcard rewards director and former Tui mainstream boss, told an e-tid breakfast briefing at the Travel Convention Tesco had only “scratched the surface” of travel.

He said there was a huge opportunity to engage the full 14 million customer Clubcard database – currently only two million are making rewards-based bookings.

Rewards offer the Tesco customer the opportunity to realise greater value for their Tesco points by using them to buy deals offered by partners, like Cosmos in Travel.

“We are just scratching the surface- that’s the reason I came into the role,” Simpkins said. “We do not make any profit from doing this. It drives a loyalty effect, so ultimately it does drive profit.

“We know our Rewards customers are our most loyal, they become real advocates and they chase points.

“We are in travel through Clubcard Rewards but working with partners to sell food and other associated items. To get into travel is not really the core competency of Tesco.

“The reason Tesco loves travel is because it has a really emotional effect, it drives the loyalty effect. I have this vision of people walking down the beans isle choosing points thinking about booking their holiday.

“It becomes a real emotional play for them while they are doing their shopping.”

Simpkins said he sees Tesco sending out more cash-based travel deals by email that can be used without the need for cashing in Clubcard points.

He added: “We are very, very careful about how we communicate to the consumer  because we do not what to lose those who are real advocates.

“We have seen the likes of Groupon come into the market. It’s almost got to the stage where we get so much contact now that’s not relevant you see it in your inbox and you delete it.

“It’s about finding the right frequency that’s right for the consumer and maybe letting the consumer choose what frequency they want.

“People shop daily, weekly and fortunately we have got that engagement. We are such a broad brush of the market. We get all sorts of people using Tesco and we can target those people easily.

“People who buy travel tend to be more affluent, older, perhaps they are not looking for the best price but are looking for the best value. That goes all the way through Tesco. People buy value.

“What I’m asking my team to do is go out and get a killer deal every fortnight to excite people.”

Simpkins said Tesco has an advantage over other online retailers because it has a customer service ethos – if something goes wrong the customer knows who to call.

Rewards bookings in travel account for around one third of the bookings made each year accounting for around 150,000 people booking with Tesco’s travel partners, Simpkins said.