Tag Archives: Thomson

Tui claims to have outperformed the market in January

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Tui claims to have outperformed the market in January

Tui Travel claims to have “significantly outperformed” the market in the peak January selling period for summer holidays.

Sales volumes are now ahead of the company’s 9% capacity reduction, and is 35% sold to date, described as in line with the previous year.

Capacity has been cut for North Africa and the Eastern Mediterranean, with some of this reduction offset by increased capacity in the Canary Islands.

“Turn of year trading has been ahead of expectations and we are particularly pleased with our online performance,” Tui said.

The average selling price is up 8%, reflecting cost base inflation of approximately 5% and the continued increase in differentiated content.

“We have continued to increase the proportion of holidays sold online with 42% booked online for summer 2012, up six percentage points versus the prior year.”

All inclusive bookings are up by seven percentage points to make up 55% of bookings to date for the first summer that First Choice becomes exclusively all inclusive.

The ‘all in’ holiday concept is proving attractive, particularly in the current economic environment.

“As we continue to expand our differentiated offering, which traditionally books earlier, these products have accounted for 64% of bookings to date, up seven percentage points on the prior year,” Tui said.

UK bookings for this winter have improved since early December, with volumes continuing to move towards a capacity reduction of 9% and there is less left to sell against this time last year.

The booked load factor is currently 71%, described as being broadly in line with last year.

“We are pleased with our price performance, with average selling prices up 5% in light of inflationary cost increases and increased differentiated sales,” Tui said.

“Demand for differentiated products continues to be strong with volumes up 15%. These products now account for 62% of our sales, up 12 percentage points on prior year.

“As anticipated, North Africa remains challenging with volumes down 23%. Across our programme strong demand in the lates booking period has resulted in improved load factors for November, December and January.”

Thomson campaign says ‘You’re in Safe Hands’

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Thomson campaign says ‘You’re in Safe Hands’

Thomson campaign says 'You're in Safe Hands'

A new Thomson advertising campaign will seek to reassure potential customers that it is financially secure in the wake of rival Thomas Cook seeking additional borrowing from its banks.

In a move that might be seen as an attempt to capitalise on Cook’s woes, the Tui Travel operator is launching a ‘You’re in Safe Hands’ press campaign designed to reinforce the message that customers can book its holidays with confidence.

The advertising push does not mention Thomas Cook explicity by name but contains a reference to “the recent turbulence experienced by another holiday company”.

The move comes the day after dynamic packaging rival Lowcostholidays was forced to offer a public apology after a Google PPC advert refered to ‘Thomas Crooked’, prompting Cook to start legal action.

The Thomson promotion “reassures customers that the company is in strong financial shape, so they are in safe hands when booking. It also aims to address any confusion between the two holiday brands”.

Adverts will appear in the Daily Telegraph, Mirror and City A.M. today (Friday) and across key national newspapers over the weekend.

It will also be supported by email and online marketing highlighting Thomson’s exclusive product range and reassuring customers that they can book with the operator with confidence.

Thomson said the campaign highlights three key points to demonstrate why it is different from its rivals:

  • That it hand picks and designs its hotels with its customers in mind – that’s why 95% of them rate its holidays as good or excellent
  • Three quarters of its holidays are exclusive to Thomson, and cannot be found anywhere else
  • Lots of Thomson’s hotels come highly recommended on TripAdvisor

Tui UK and Ireland marketing director Jeremy Ellis said: “When there is uncertainty in the marketplace, consumers want to book their holiday with a company that they can trust, and we want to reassure them that Thomson is in great shape.

“This campaign also highlights the success of Thomson’s strategy of investing in distinctive, high quality product that the rest of the market is unable to copy.  When the economy is slow, customers’ hard-earned two weeks away in the sun become even more important to them, so they want to be confident that they will have a great holiday experience.

”We believe that we offer the very best holidays, not only in terms of experience and value but also peace of mind.”

Cook has consistently said since announcing a deterioration of business on Tuesday that customers can continue to book with confidence with the company.

Tui retail shake-up brings new shops and closures

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Tui retail shake-up brings new shops and closures

Tui retail shake-up brings new shops and closures

Tui Travel will open more Thomson and First Choice shops in the north and the Midlands as it targets 80% controlled distribution, but other regions will see shop closures.

Speaking to Travel Weekly in an exclusive interview, Tui Travel UK distribution director Nick Longman said two more branches would open in Scotland in the next few weeks and many other gaps in the portfolio had been identified.

“We said that we would control 80% of our sales, but within that average there are parts of the country at 90% and others at only 65%,” he said.

“So we want to get a minimum level of control everywhere.”

Longman said the company assessed levels of broadband availability and internet usage across the country, and would open shops to compensate where both were poor.

In some cases, he said shops were more cost-effective than the web.

Longman added that Tui would open shops in towns where it had previously closed them down, and said coveted units within shopping centres had started to become available as other retailers, such as MFI, Woolworths and Birthdays, closed.

However, more shops will close during the coming years than will open.

“We might open 50 but close 70,” he said. “There will be some areas where we’ve got too many shops or where the internet has really caught on fast.”

Longman said Tui would also be taking on shorter leases. “Half of our leases come up in the next five years.

“Generally, instead of 15 or 10-year leases with a 10 or seven-year break, we’ll be going for five or three-year leases with a three or one-year break.”

Tui also plans to step up training and aims to have an agent in every shop who has visited the main destinations.

It is also set to trial an incentive scheme for customers on holiday to book their next trip, with the sale being attributed back to the original agent.