Coaching giant eases passengers fears

Friday, 17 May, 2005 0

Coaching operators Wallace Arnold and Shearings have pledged to retain their brand integrity after admitting customers have expressed concern over the companies’ merger.

The reassurance came as the new grey market superpower, WA Shearings, called on the trade to exploit the untapped potential of the £2.1 billion coaching industry.

Speaking two months after completion of the merger, WA sales and marketing director Karen Gee said she understood why customers – many of them fiercely loyal – were anxious and have written letters expressing concern.

“We have repeat business of about 80% and some customers have been travelling with us for 20 years so I can understand their nervousness,” she said. “Our top priority is to ensure they know the benefits and to reassure them their holiday experience will not alter. John Slatcher (Shearings managing director) and I have personally called people back to explain the situation. Our customers are the priority and retention of them is crucial.”

She said worries of higher prices and less choice were unfounded.

“Indeed, the choice and flexibility will be greater and prices will not change,” said Gee.

Turning to the trade, Gee confessed agents have been slow to sell coaching holidays despite the size of the market and earnings potential.

“The trade is in touch with cruising and places importance on it yet coaching, which is double the size, is seen as niche and less glamorous,” said Gee. “Around 40% of the UK is aged over 50 and they have 80% of the country’s wealth so it’s a massive audience.”

She said coaching is wrongly viewed as cheap, tame and for people who are much older than 50.

“Some of the itineraries are extremely active,” she said. “Agents need to put their perceptions behind them and begin to tap into what is a lucrative market, particularly in an age of direct sell and falling commissions.”

Agent training may be stepped up to reinforce the message while a seventh on-the-road sales rep is being recruited, Gee added.

Meanwhile, savings from the new operation include £3-£4 million on duplicated pick-up points. The new joint brand will feature for the first time on its summer 2006 brochures, due for launch in September, when an expanded range of European ‘fly-coach’ holidays will be offered.

Report by Steve Jones