A BLAZE of publicity surrounded the launch of the Truly Independent Professional Travel Organisation last year as specialist tour operators sought to offset the growing threat of directional selling.
It was the brainchild of Cadogan Holidays managing director Gary David who assembled 30 companies willing to inject £25,000 into the organisation.
By employing a merchandising team to visit agents on a monthly basis and push member-operator products and new brochures, TIPTO hoped to strengthen the independent sector.
It hasn’t been a totally smooth ride. TIPTO has been criticised by some industry observers for failing to deliver value for money. Some agents also criticised staff from Network – the merchandising team used by TIPTO – for their lack of product knowledge.
Yet despite the harping, operators and agents appear to be warming to the venture or, at the very least, reserving judgment.
The current formula gives each operator three ‘enhancement cycles’ a year – whereby the on-the-road merchandisers spend time discussing product. Visits at other times will check brochure supplies, inform retailers of special deals and invite agent feedback.
Superbreak sales director Ian Mounser said: “You can’t do too much work with the independent sector. Because we have our own sales team we are not reliant on the Network pushing our product but even if they spot an agent has run out of brochures, it is worth it.”
Mounser admitted it was impossible to fully brief Network staff on all products and said it was important not to overburden them with product detail.
“It takes us 12 months to train new members of staff. The first six months is our investment and only after that do we begin to see a return on that investment. “If TIPTO expected staff to have a detailed working knowledge of each product, then they were over ambitious.”
Keycamp agency sales manager Sarah Williams said TIPTO was playing an important role for companies which do not have an on-the-road sales team.
“When they visit agencies, Network are not putting on a Keycamp hat and saying how marvellous our product is,” she said. “We see it as a way of communicating product updates to agents. The visits also enable us to check the brochure is being racked or to order new supplies.
“Whether it is leading to more sales I don’t know but we’ll have a better idea next month.”
Jetlife sales director Andy Mitchell admitted there was initial concern over the lack of product knowledge but claimed sales through TIPTO agents has increased by 11%.
“Agents were saying that Network staff were not clued up but that is improving,” he said. “From Jetlife’s perspective it gives us brand awareness.
“The only disappointment has been the training days which have sometimes attracted only 15 agents.”
Participating agents have given a mixed response to TIPTO now it is in operation.
Some like Brompton Travel think it has drawbacks. Its owner Giuseppe Sazio said: “The problem with TIPTO is that it has no commercial teeth. Many of the operators will not offer more than 10% or 12% and if I can get better rates with another company, that is who I will choose to sell.”
However, Carrick Travel retail general manager Priti Mehta is pleased with TIPTO. “We have had visits to each of our six shops in the past two weeks. The merchandisers give us sales material, arrange for brochure supplies to be delivered and will hopefully start stamping the brochures and putting them out for us. It has brought us closer to some of the operators.”
TIPTO chairman Warren Sandral, who will relinquish the position next month, said feedback from agents and operators has been good despite the rough start.
“There was criticism but you cannot make people knowledgeable about a subject overnight,” he said “The objective of TIPTO is to create a link between operators and agents. Problems can be dealt with quicker, brochures can be ordered and the salient points of a product can be relayed to agents. It is still early days but the feedback has been good. The independent agent has never been more crucial to the independent operator,” he added.
The French Life chairman added that efforts will soon be made to expand the operation to include multiples.
He added: “There are a number of operators who would like to be represented in the multiples and it’s something we are looking at.”
“The TIPTO merchandisers give you the main points of a product whereas some in-house sales staff want to take you through every hotel in the brochure. I don’t have time for that and am more than capable of reading a brochure.”
Elaine Williams, Access Travel
“I was sceptical at first as I could not see how TIPTO would work with a consortium. But it does appear to be working and has opened up new lines of communication between operators and agents.”
Sue Foxall, Midconsort chief executive
“I would not say it is having a major impact on sales but we are reserving our judgment for a while. The problem is that there is a cross-section of companies which all have different needs.”
Paul Riches, Cosmos
“We have invested £25,000 which is roughly the equivalent of one sales rep. Through TIPTO, however, we reach hundreds of agents which one person could not hope to do.
Sarah Williams, Keycamp