Tag Archives: summer Holidays

Will Tui bring in single pricing? It ‘could’

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Will Tui bring in single pricing? It ‘could’

By Lee Hayhurst

Will Tui bring in single pricing? It 'could'Will Tui Travel stay good to its word and bring in single pricing across web and offline, following the move to price parity by rival Thomas Cook?

The travel giant was early out of the traps last year in indicating this was its ultimate intention when travel distribution and online directorNick Longman addressed the Travel Convention in Turkey.

He indicated that a move to flat pricing would happen within two years as Tui rolled out its new Phoenix in-store technology system and would see agents add a service charge.

But last week his former UK boss, Johan Lundgren, now chief executive Peter Long’s deputy, struck a more cautious sounding note while accepting the logic of single prices across multiple channels.

As Tui revealed plans for new generation concept stores last week, Lundgren stopped short of promising to bring in flat pricing or setting a date by which it would be implemented.

He told Travel Weekly: “It’s not unlikely that this will come at some point. There is logic to the idea that there should be the same price in all channels – that is a logical evolution.”

Asked for an assurance that it was Tui policy to bring it in, he said: “It could be coming,” adding: “there is a logic to the fact that the price is the same in all channels.

“We should remember some of the logic about the online discount is that if the customer does the work themselves they get something for it.”

In what some have seen as an audatious bid to outflank its rival, Cook announced its move to price parity with very little fanfare shortly before Christmas.

The move to flat pricing was widely praised in the trade for offering customers clarity and an attempt to move them away from the assumption that online is always cheaper.

Speaking during a filming day ahead of today’s Barclays Travel Forum John Hays, managing director of Hays Travel, said the impact had been noticeable and was welcome.

“Thomas Cook seems as if they are implementing what they said they would in terms of reducing discounting online – it appears they are implementing a one-price strategy. “Tui said they needed to do that, but it’s less obvious with their online discounting.”

Thomas Cook price parity sparks rise in indie agents’ sales

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Thomas Cook price parity sparks rise in indie agents’ sales

By Juliet Dennis

Thomas Cook price parity sparks rise in indie agents' salesIndependent agents have reported an increase in sales of Thomas Cook product following a move to single pricing across its in-house channels.

Cook introduced price parity across its shops, call centres and online in December. This allowed third-party agents to compete with the operator as the difference between Cook’s prices and independent agents’ narrowed.

In the coming weeks, the company plans to extend price parity to include sales through independents.

Hays Travel Independence Group has reported triple-digit percentage growth in sales of Thomas Cook holidays for summer 2013, while Advantage Travel Centres has reported a strong post-Christmas performance.

For years, online discounts have been a bugbear for independents because they could not compete on price and were forced to discount commission to win a sale.

Hays attributed its sales hike to Cook’s move towards price parity and the fact it had gained members who are strong sellers of Cook holidays.

Advantage head of commercial John Sullivan said consumers were shopping around less because prices differed “only by a few pounds”.

He added: “While price parity is not yet 100%, it’s now a lot easier for members to compete.”

It is understood Cook is also reviewing levels of commission to third-party agents.

A spokesman for Thomas Cook said: “Following the launch of price parity, we’ve received fantastic feedback and we’ve seen an increase in sales through our agent partners.

“Our commercial agreements remain confidential, but there is no intention to reduce income levels; we’re maintaining a level playing field so they can match our retail and online pricing.”

Take-off for Google Flight Search in UK

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Take-off for Google Flight Search in UK

by Lee Hayhurst
by Lee Hayhurst

 

Google has rolled out Flight Search in the UK as part of a first move into international markets.

The product, which is the result of Google’s controversial buyout of software firm ITA, has been live in the US since September 2011.

Its speed and ability to search for flights according to a diverse range of criteria has made it the source of much speculation, although Google has not rolled it out as quickly as expected.

However, today’s launch in the UK, France, Italy, Spain and the Netherlands with local pricing and in eight languages ends speculation that Google has reined in its ambitions for Flight Search.

The main difference between the US and UK product is the absence of a commercial unit that sits at the top of natural search results.

Google said it was assessing this before deciding whether or not to include this in its international version.

Other than that the non-US version is an exact copy, the Google spokesman saying it was aimed at people in the early stages of research when they do not know where they want to go.

Using a map-based interface, Flight Search allows users to filter their results based on how much they want to spend and flight time.

The biggest omission for the European market is the absence of Ryanair and easyJet, although Google said negotiations were ongoing.

In terms of fulfilment partners, Google has struck deals with a number of European intermediaries including Bravo Fly, Budget Air and fly.co.uk.

The Google spokesman said: “These are big markets. The plan with all our products is to go global as quickly as we can.

“With something as complex as flights there are a lot more partners to negotiate with. This is the first market beyond the US, but logic would suggest there are more to come.”