T4: From dinosaurs to oil tankers

TravelMole Fast Conference Special: The Big Four and larger online players are disadvantaged by their size when it comes to succeeding in specialist markets, according to leading niche operators.

TIPTO chairman and Superbreak Mini Holidays sales director, Ian Mounser was on the panel at yesterday’s TravelMole Fast Conference. He said: “A lot about niche is about speed because you have to get into markets quickly – before everyone else.

“It is not a surprise to hear that multiples are last in grasping new markets because they are slowed down by their dinosaur vertically integrated owners.”

Norwegian Coastal Voyages head of business development, Laurence Hicks, who was also on the panel, said he agreed: “Changing the course of the larger vertically integrated operators is like turning round an oil tanker.

“And once it has turned, the market ahs changed again.”

Another problem for larger players, both traditional operators and agents and travel websites, is lack of expertise in niche markets, said panel members.

Mr Hicks said: “People will have great problems booking niche products online because they need to know answers to specific questions like when booking a safari holiday they want to ask about safety and will an elephant stampede their tent. I still think people like to interact either face to face or over the phone with an expert.”

He added: “While the niche product will continue to survive where it is done well, the mainstream product will continue to be readily available elsewhere.”

He also said that larger operators had limited success at running niche businesses in the past. “If you look at when the large tour operators have taken control of niche operators it hasn’t worked. Like Magic Italy for example, which was run by passionate Italians that knew the market and did all the contracting face to face, then put it into the large group it loses its soul and loses its niche.”

Panel member and Travel UCD chief executive, Alex Bainbridge said it wasn’t any easier for larger travel websites: “The big online players don’t have the product knowledge that the smaller experts do, so small companies can beat the online giants if they get their distribution right.

Robert Cappin from Florida specialists, Mercury Travel was in the audience and said that two thirds of his bookings still come via the phone. “We put together exactly what the person wants and that is our niche – the internet is helping people to do the research and find what they want, but they still want to talk to someone – and they need to be an expert in the field.”