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Online holiday sales nudge ahead of high street bookings
TUI Travel admitted today that the company would close further high street shops as the internet becomes an increasingly important sales outlet for the business.
However, TUI is not planning widespread closures like rival Thomas Cook, even though agents now account for just 38% of its business while 40% comes via its website, said distribution director Nick Longman.
"There is no doubt we will see online growing, but travel agents will remain a very important sales outlet for us," added Longman. "We will continue to close shops where necessary but we are not looking at widespread closures and we believe High Street shops will continue to play a vital role in the sales process."
He said there was no danger the company would follow Thomas Cook in rapid closing high street shops as it is not suffering the same financial difficulties. TUI today announced an 18% rise in operating profit for 2011.
Longman pointed out the two companies operated very different business models. "Thomas Cook is primarily a travel retailer whereas we are holiday providers and we are focusing more and more on providing differentiated product that offer holiday experiences which people can't buy anywhere else," he said.
Differentiated holidays, such as Thomson Couples (aimed at 35-55 years olds), account for two-thirds of all its sales but the company is aiming to grow this to 80%, said Longman.
He said the company was excited by its long-term prospects beyond 2013 when it will become the first UK charter company to operate the Boeing 787, nicknamed the Dreamliner.
"With its increased range it will give us some exciting options, such as Vietnam. It can even fly to Hawaii, and the passenger onboard experience will be hugely different. With larger windows and mood lighting, passengers will suffer less jetlag. We are very excited about this."
By Linsey McNeill
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
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