Agents ‘missed the boat’ on domestic holidays

TravelMole FastConference Special: Big domestic brands like Hoseasons and Bourne Leisure sell well through the trade, but Britain’s smaller independent outfits do better direct, a TravelMole FastConference heard this week.

On the panel at the TravelMole FastConference, which tackled the issues affecting Britain’s domestic tourism industry, was British Holiday and Home Parks Association director general, Ros Pritchard.

She told the audience: “The big names sell holidays through the trade but there are so many businesses in the UK which don’t work through the trade because they don’t want to pay commissions.

“The boat has been missed for agents that want to become an intermediary because we’re selling so much direct,” she said.

She added that smaller businesses such as bed and breakfast accommodation worked best on word-of-mouth and repeat business – she said many of her members receive around 70% repeat business.

VisitBritain England marketing manager, Michael Bedingfield, whose organisation sponsored the event, was on the panel.

“Ask Thomas Cook how much repeat business they get and it will be nothing like the 70% we get in this business,” he said.

“Someone has got to consolidate all this product if they are going to sell it on the high street,” said Pritchard. “But homogenising the fragmented UK product like holiday cottages will not work, and in some ways will lose its attraction.”

BTTF and WTM event director, Graeme Barnett, who was also on the panel, agreed.

“Travel agents can be lazy [when it comes to selling domestic tourism]. You can argue that domestic suppliers could forget the agent and use alternative channels, which in many cases are cheaper,” he said.

Joining him on the panel was East Midlands Tourism chief executive Richard Dickinson, who said that his organisation had this year upped its budget from £250,000 to £5 million for the year. Much of the budget has been spent on packaging product to market it to the consumer, cutting out agents and selling direct to the consumer through its website.

VisitBrighton’s Nick Vowles, who was in the audience, said most of the ‘short- breakers’ visiting Brighton booked their accommodation direct.

“They’re sophisticated travellers who know what they want,” he said.

But he added: “We are looking to work with the trade to help shift off-peak rooms.”

Dickinson said his organisation was also looking to work with agents and will shortly launch a trade website for the East Midlands region, but he said: “There is a lack of commissionable product.”

Bourne Leisure head of agency sales, Colin Wilson, was in the audience. He disagreed, saying that a three-bedroom caravan at peak season in a premium destination could sell for £1,100, offering scope for “more commission than a cruise”.

He later added: “If a travel agent puts a deal in the window for a domestic break they are not going to sell any less holidays abroad, they will just sell more UK holidays.”

Domestic suppliers and operators have also tried to woo the trade with fam trips. Bedingfield said VisitBritain had found great success with agent fam trips in the UK.

“People are being wowed by Britain,” he said.

Wilson said his organisation also offered fam trips to agents. “There is a perception issue around the domestic product, but we have taken agents to see the product and they have been blown away.”

Next week Wilson will join 20 agents on a 24 hour fam trip on the south coast, which will include a trip to a Butlins resort. But he said attendance was an issue, and added: “The challenge is also keeping the UK on the agenda”.

Participating from the audience was TUI UK’s Karen Froggatt, who accepted that the trade was not as good at selling domestic tourism as it should be, but said TUI was adding a UK unit to its e-learning scheme. The online modules, undertaken by all sales consultants were aimed at improving UK knowledge.

She conceded that agents preferred to sell long-haul and cruise holidays because of the higher commissions.

Rounding off the event was a comment from Hoseasons’ Charlie Cooper. He said he was optimistic about domestic operators working with the trade, with better racking and improved communication of domestic product from consultants to the customer.

Report by Ginny McGrath