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| | 06 September 07 | Thomson
Holidays U-turn back to travel agents |
The
UK's best known package holiday firm, Thomson Holidays has done
a U-turn on its relationship with traditional UK travel agents.
About two years ago the tour operator had cut the commissions to
agents from 10% to 7% on the basic price on holidays that they
sold. Thomson had also cut all commission off any travel
extras that people added onto the holiday, ie. flight meals,
transfers and pre-booked seating.
Forced into switch selling
The reaction by the majority of both independent agents and also
large travel agent groups like co-op travel was to fight
back. Many started switch selling holidays to other more
'agent friendly' operators and de-racking the holiday brochures
from their shops.
Thomson's had originally said that they were trying to push
their online website which would cut expenditure and in theory
reduce holiday costs for their clients.

The operator has now back tracked and are in talks with selected
agents regarding increased commissions and initial reports are
that its the travel agents in control of the negotiations.
Reactions have been strong against the tour operator as the
feeling was that it had totally turned its back on the high
street agent. A few agents are still holding a grudge like
the managing director of Travel Designers in Clapham.
He told the Travel Trade Gazette (TTG), he said "We do not
need Thomson, nor should we entertain them. It is time the
independent sector collaborated to teach big companies such as
Thomson a lesson that they would not forget in a long time.".
True cost of selling through the web
Thomson Holidays brand is part of the German owned group, Tui
Travel. The managing director, Dermot Blastland has said
that he now knows the true cost of selling holidays through the
web, by call centres and through high street shops.
He said, "We have learnt that the web is not free. You must
develop systems, you have to do marketing on the web and all
that costs."
This should be good news all round as it gives more choice for
customers and agents to be able to find the best suited holiday
at a resonable price.
Useful Websites
Thomson
Holidays
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