| Journal: TWUK | Section: |
| Title: | Issue Date: 19/06/00 |
| Author: | Page Number: 23 |
| Copyright: Other |
Preussag takeover
Internet knowledge to bolster Thomson sales
Report by STEVE JONES
THOMSON is expected to benefit from Germany’s advanced knowledge of the Internet once Preussag receives the all clear to take over the operator.The TUI group, the tour operating arm of Preussag, has offered on-line bookable holidays for more than two years and now takes around 5,000 bookings a month.
UK operators only began offering the service in the spring.
TUI executive group chairman Dr Ralf Corsten said the operator had learned a lot since launching its e-commerce strategy.
“We started off by taking around 500 bookings a month – we are now running at ten times that amount,” he said.
“What is especially amazing is that the figures continued to rise in April and May. Sales through travel agents decrease during these months.
“It has been a considerable success.”
Unlike its UK counterparts, however, TUI has said it has no intention of closing any of its 2,800 travel agencies.
“We have found those booking on the Internet are new clients,” said Dr Corsten.
“The customers who have booked through travel agents will continue to do so.”
While Thomson will benefit from TUI’s experience of the Internet, a partnership with the UK market leader could help the German’s further develop the practice of directional selling.
Dr Corsten said only 25% of TUI product is currently sold through its own retail network.
Praising the UK’s vertically integrated model, which German operators are replicating, Dr Corsten said: “It makes sense to have influence on the value chain as it controls quality.
“If you can get better organised between parts of the value chain you can produce packages more economically than if you buy different parts of the operation.”
Speaking of the differences between the German and UK market, Dr Corsten said German holidaymakers would not even contemplate booking 12 months in advance.