| Journal: TWUK | Section: |
| Title: | Issue Date: 24/07/00 |
| Author: | Page Number: 2 |
| Copyright: Other |
Industry ‘sceptical’ about consortium’s plan to sell preferred suppliers’ product
Travelsavers’ policies receivemixed reaction from operators
Report by DIANE SMITH
OPERATORShave given a mixed reaction to claims that new consortium Travelsavers will be able to persuade independent agents to directionally sell.The marketing company is due to launch soon in the UK with former Scottish Passenger Agents’ Retail Consortium chief executive Ken McLeod at the helm (Travel Weekly July 17).
It hopes to recruit 600 members at the rate of a couple of hundred a year and is ploughing $100,000 into a marketing campaign. It hopes to succeed in selling preferred suppliers’ products – a system that has worked in the US.
But many operators are sceptical about Travelsavers’ policies, saying previous attempts by other consortia such as Advantage’s failed franchise with Airtours shows how difficult it is to get consortia members to directionally sell.
JMC sales director Denis Wormwell claimed that, with the exception of Global Travel Group which runs a form of franchise, independent agents and directional selling don’t seem to mix.
“An independent agent’s strength is its expertise in the local market and knowledge and breadth of operators that it deals with,” he said.
“If Travelsavers does what it is saying it will do, it will be acting like a multiple.
“However, if some good agents decide to join Travelsavers, then we will continue to work with them,” he added.
“I don’t think there is room for another consortia. There is nothing new in what Travelsavers is doing. I’m quite cynical about it.”
First Choice managing director of distribution Peter Shanks said: “The old type of consortia like NAITAand ARTACare changing. The question is whether Travelsavers can make the formula work and whether it can get members to sign up. If a consortium is able to deliver, we will work with anyone.”
Thomson, however, believes Travelsavers’ proposal is very exciting and is having a series of meetings with the new group.
National sales manager Jeanne Lally said:”We feel they’ve got the right people and the right approach.
“They appear to have done their research and we’re encouraged by what we see.”
n See Comment and Analysis, page 8
Varied views: Wormwell, left, believes directional selling and independent agents do not mix, while Shanks remains open-minded about Travelsavers’ plans