Interview: Ian Derbyshire, tour operations sales director, Thomas Cook

Thomas Cook tour operations sales director Ian Derbyshire (left) has claimed that any argument over the merits of discounting is irrelevant and the only debate is on how big the deals should be.

Derbyshire recently spoke at the Travel Trust Association conference in favour of discounting and believes independent agents just have to accept it as a fact of life.

“I could understand some moaning a few years ago, but now the discounts are all operator funded, so I don’t know what the problem is,” Derbyshire told TravelMole.

“Discounting is a national institution and has been with the British people since the 1960s, when deals were offered on things like Daz washing powder.

“It’s a powerful marketing message and the only question now is at what level we pitch the deals. Do people want 50% off, or should it be more or less?”

Derbyshire claimed companies that had supposedly offered basic brochure prices without discounts – like Thomson in 2001 and Airtours Holidays earlier this year – had either failed or linked the prices to deals.

“Airtours came out with a ‘no flight supplements’ message, which is just a discount by another name,” he said.

Derbyshire added that without discounts it was impossible to offer flexible pricing in an unpredictable market.

“You have to be able to react to market conditions and different levels of discounts allow you to do that.

“There are so many things that affect the price, like currency levels and terrorism.

“If you don’t adjust your prices then you are left behind. It’s a very competitive market and unless you have a totally unique product, it’s difficult to charge a premium price.”

Thomas Cook and other vertically integrated companies are expected to come out with big deals to stimulate the market in the post-Christmas period.

MyTravel is already claiming its summer 2003 brochure prices are 55% cheaper than last year, but in 2002 the company offered, through its retailer, big discounts that are no longer available.

Derbyshire refused to reveal details of the Thomas Cook strategy.

Meanwhile, Thomas Cook has revealed that 10 senior managers are to be made redundant as it streamlines its tour operation and retailer.

Derbyshire would not give any more information about the changes, but said an announcement would be made shortly.

See previous TravelMole Interviews:
03-Dec-02 Gary David, managing director, Cadogan Holidays
26-Nov-02: Vic Sheppard, UK sales and marketing manager, Emirates
19-Nov-02: Mathew Prior, managing director, First Choice Ski
13-Nov-02: David Clifton, md Europe and Asia, Interval International
04-Nov-02: David Norris, brand manager, ifyouski.com
29-Oct-02: Chris May, managing director, Hayes and Jarvis
21-Oct-02: Fiona Jeffery, Reed Exhibitions director
14-Oct-02: Brent Hoberman, ceo and co-founder, lastminute.com
09-Oct-02: David Burdon, sales and marketing director, Cosmos
02-Oct-02: Jeff Rebello, UK marketing manager, SAS
24-Sep-02: BITOA chief executive Richard Tobias
17-Sep-02: Alan Croft, deputy managing director, Bridge Travel Service
10-Sep-02: Noel Josephides, managing director, Sunvil Holidays
04-Sep-02: Geoffrey Lipman, World Tourism Organisation adviser
26-Aug-02: Jo Rzymowska, Walt Disney Parks and Resorts
20-Aug-02: TravelMole Interview: Peter Shanks, senior vice-president, Cunard Line
13-Aug-02: Tom Allen, The Theme Park People
05-Aug-02: Chris Kroeger, Sabre
30-Jul-02: Chris Mottershead, TUI UK
23-Jul-02: Seamus Conlon, Airtours Holidays
15-Jul-02: David Soskin, cheapflights.co.uk
09-Jul-02: Bruce Bishins, Genesis TDS
01-Jul-02: Howard Frost, Travelink
25-Jun-02: Rob Wortham, RWA
17-Jun-02: Paul Blackney, Worldspan
11-Jun-02: Mark Jones, Online Travel Corporation
27-May-02: Oliver Hillel, UNEP
20-May-02: Keith Webber, Telewest
13-May-02: Mark O’Brien, Rosenbluth International
07-May-02: Alicia Gardner, Sabre
29-Apr-02: Carolyn Ezzell, Delta Air Lines
23-Apr-02: John Davis, Pegasus Solutions
15-Apr-02: Gregory Hunt, ABTA Arbitration Scheme
09-Apr-02: Stuart Winter, Atinera
03-Apr-02: Roberto Da Re, Dolphin Dynamics
26-Mar-02: Arnaud Debuchy, Amadeus
19-Mar-02: Helen Baker, Lastminute.com
12-Mar-02: Pat Minogue, Galileo
07-Mar-02: Jon Hart, MyTravel
28-Feb-02: Lawrence Hunt, Rapid Travel Solutions