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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.

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