Dynamic packaging and agents’ responsibilities for their customers will be high on the agenda at this week’s ABTA Convention

TravelMole guest comment by Youtravel.com sales and marketing director Paul Riches

Dynamic packaging is set to be the buzz word at this year’s ABTA conference. And debate this year will be livelier than ever with questions about the rights of the consumer. 

A lot has happened since last year’s conference when Thomson announced it was slashing commission to agents.  

As the big players continue to market holidays directly through their own channels, the opportunity for accommodation-only companies has really opened up.  

We’ve seen new brands, including our own, come into the market and now competition is really hotting up.

But how does a brand stand out in a very crowded market?  And what does a new business need to do in order to succeed? Agents quite rightly want to ensure they are maximising commissions to protect their profits.

We know that increasing numbers of agents are mixing and matching flightsand hotels to build the right holiday for customers. 

But high profile news stories about bonding issues and health and safety have really focused attention on the whole area of agents’ responsibility for their
customers. It’s more important than ever that accommodation-only companies demonstrate that they offer added value. 

As a newcomer to the market it’s essential that we create points of difference.  Having a wide range of hotels in popular destinations at the right prices is crucial. 

But it’s not enough. Being successful when there is so much competition is not all just about price. Alongside a great range of keenly priced properties there must be easy-to-use and reliable websites backed up with the best technology and agent support.  

Agents also want the reassurance of a trusted brand. We recently took a bold step to take responsibility for health and safety issues by becoming the principal in the booking process, which we felt that was an essential step in building that trust with the trade. 

We’ve already signed new agreements with agents because we’ve taken the step. Youtravel.com has a first class team behind it, we’ve recruited people with fantastic track records in the travel industry, know the business model inside out
and back to front. And we are continuing to hire top people. 

With strong financial backing we believe with have the right formula to become one of the market leaders.

As the rise and rise of dynamic packaging continues, we have to stay one step ahead.  As specialists in many of the markets we operate in, particularly the Eastern Med, we are in a strong position to negotiate the best rates with hoteliers.  We are on target to have 4,000 hotels by the end of the first year.  

The European market offers a big growth potential for accommodation only companies. Other European countries are following what’s happened in the UK regarding reduced commission from the big holiday companies and are looking for ways to protect their business.

We want to move into Europe through general sales agency agreements, but we will invest ourselves in markets where we seeparticularly strong opportunities such as the opportunities we saw in Italy where we just opened offices.  

Between now and Christmas we have three new European websites tailored to the relevant markets going live.

As the UK and European business grows our strategy remains robust. Building a brand by having the best hotels, competitive prices and selling systems with a top class team delivering it.