Will Tui bring in single pricing? It ‘could’

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.”

New mobile app and tech-laden concept store for Thomson

New mobile app and tech-laden concept store for Thomson

By Travolution
By Travolution

Leading European tour operator Thomson has launched a new mobile app ahead of the summer holiday period as it prepares to unveil its next generation hi-tech store of the future.The MyThomson app will allow customers to access information about their trip while on the go including destination guides, weather updates and flight times.

It will also be integrated into social networking sites like Facebook and Twitter.

Johan Lundgren, deputy chief executive of Tui Travel, said: “Tui Travel is an online driven business and we will continue to enhance our mobile offering.

“The launch of the MyThomson app is an exciting new way of connecting our customers with Thomson anytime, anywhere, anyway.

“Innovation is at the heart of our strategy to deliver future growth, and the launch of the MyThomson app reflects our position as market leader.

“The annual summer holiday is a significant purchase for our customers and we know that they not only spend time choosing and planning their holiday but also looking forward to it.

“The app is a fantastic way to get customers more excited about their holiday and will help them keep up to date with all the information they need in one place, just a tap away.”

Meanwhile, Tui will announce next month which location has been chose for its new concept store that it promises will harness the latest technology to drive customers in.

The firm hopes to have refitted 10 of its 700 UK stores by Christmas and as many as 100 in coming years.

Tui said  a key strategy is “selling directly to our customers through multiple channels, and so our retail network remains important to us”. It added “the emphasis of these new shops will be on service in a modern environment”.

Kathryn Ward, director of retail and financial services, said: “Our next generation store recognises the importance of people when it comes to choosing and booking a holiday, whilst integrating technology into the whole experience to really bring it to life.

“Customers will be able to immerse themselves in stunning, rich and evocative content as they research and browse our unique holidays in-store.”

Key features of the next generation Thomson shops include:

– The shop front will have a giant immersive video wall (2m x 3m) to showcase new video content and imagery of the holidays combined with evocative sounds and  aromas

– At the entrance an interactive map and interactive table will entertain customers and help them research holidays and find out more about the broad range of product available

– The Advice Bar will give customers the chance to browse the Thomson and First Choice websites on self-service laptops with staff on hand to answer any questions

– Free customer WiFi will also enable customers to use their own devices to research in store and check out review content

– High definition screens and booth projections around the store will feature changing images and videos to inspire customers and give them a feel of what to expect from their holidays before they book

– The store will be zoned to meet the needs of all customers and staff will join them to help with their holiday decisions.  Customers can choose from sitting around a laptop in the pool area, self-serving at the Advice Bar or have a more personalised experience in the booths where images of their chosen holiday will be projected on the wall

– All customers will be served with barista style coffee to further enhance the booking experience

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.