Travelocity boss outlines offline strategy

Tuesday, 09 Jan, 2002 0

Travelocity.co.uk managing director Jamie Cole has told TravelMole that adding offline capabilities to the business is paying off for the company.

It follows the acquisition of UK call centre operation Air Tickets Direct in August along with the formation of Travelocity Europe, a joint venture between Travelocity and German direct marketing firm Otto.

Mr Cole told TravelMole: “We recognise that we have to talk to customers in whichever way they want – so a multi-channel approach makes sense.”

The company’s UK call centre, near Stansted, now has 77 staff. Mr Cole conceded that it had pushed up distribution costs, but added that typical bookings via the call centre were generally of a higher value with bigger margins. He also said that Travelocity would be looking to keep the centre’s costs to a minimum by keeping staff numbers the same even while the business grew. Mr Cole said this would be possible by importing sophisticated ticketing and documentation technology from Travelocity in the US.

The $50million joint venture with Otto, which was approved by the EC last month, means that Travelocity will have a retail presence for the first time through Otto’s Travel Overland outlets, which are expected to be eventually rebranded with the Travelocity name. The company will also offer travel services over the telephone as well as the internet. Travelocity Europe is headed by chief executive Dirk Hauke, who said the company aims to become “a leading player in the European travel market, both on and offline.”

Otto owns or has controlling interest in 90 companies in 23 countries around the world, including UK brands Grattan and Freemans. Grattan, in turn, has a joint venture with Tesco home shopping in the UK.

Mr Cole said Travelocity is looking at other European markets, including France. He would not comment on whether this would involve linking up with Karavel.com, which is also owned by Sabre and which launched last June. However the structure of Travelocity Europe provides for the addition of further strategic partners.

See our previous stories:
Atinera signs Travelocity in its biggest deal to date
Travelocity boss says internet firms will emerge stronger than ever
Travelocity UK presence reinforced by Air Tickets Direct acquisition