Independent agents neutered by Thomson sales

TravelMole Comment by Jeremy Skidmore

The comedian Catherine Tate has apparently been hired by Thomson for its next advertising campaign.

The first scene shows a friendly Thomson chap explaining that he’s able to offer customers even bigger discounts by cutting payments to independent travel agents. He explains that customers can buy holidays through its own shops or on the internet.

The second scene shows independent agents up in arms about the move, swearing blind that they’ll never sell another Thomson holiday for as long as they live.

Then the camera pans to Tate who, in a now-famous pose, points to her face and says: ‘am I bovvered?’

I jest, of course, but the reaction could well sum up the attitude at the company’s new Luton headquarters after sales figures showed Thomson had outsold its rivals in January and February.

The most depressing news for independent agents is that the operator has actually been rewarded for reducing commission.

How can this be? Directional selling at Thomson’s own shops is at an all-time high, cancelling out any downturn in sales from independent retailers.

Meanwhile, while some agents have kept to their word and refused to sell Thomson, others have reluctantly offered the holidays to clients who have been loyal to the brand and attracted by the discounts. Money has literally been transferred from the hands of the agent to the holidaymaker.

To add insult to injury, Thomson is now one of the most visited travel sites on the internet, disproving the theory that the first ‘movers’ into a market have an advantage over their competitors. The operator took forever to get its website up to speed and then claimed it was making a revolutionary move when it launched a no-frills airline some 10 years after its competitors but, as they say, it’s flying now.

So, where does this leave the independent retailer? In a weaker position than at any other time in its history or with a golden opportunity to do something different? You tell me, but I know which my money would be on.

Not all of the major operators will follow Thomson. There’s an advantage to be had in acting differently and, as I’ve said before, the other majors cannot afford to act in such a cavalier fashion.

But expect Thomson to plough on and drop commission to five per cent by the end of the year.

Changing tack, the class action for compensation against tour operators by holidaymakers who were stuck in Cancun when Hurricane Wilma struck will have huge implications for the industry.

Legally, I’m not able to comment on whether they have a case, but if a judge rules that it was not reasonable to send clients to Mexico, it could devastate the holiday market to the Caribbean and beyond. Any hint of a wind in the air will lead to cancelled trips; some companies may think it is just not worth featuring such areas.

I’ve heard it said that the last couple of years have seen extraordinary weather patterns, with a huge number of hurricanes in Florida, the Caribbean and Mexico. But that’s not actually the case. It’s the previous 30 years that have been extraordinary and we are now reverting back to normal weather patterns, according to meteorological experts.

Tour operators pride themselves on looking after customers during a crisis. If they get kicked in the teeth for their efforts, there will be a huge backlash.

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