WHEN Harry Goodman set up TV Travel Shop on Cable TV in April 1998, he predicted it was only a matter of time before others joined his revolutionary approach to selling holidays.
“When digital TV arrives, there will be more channels like ours but we have got to get a lead on this,” he said at the launch.
Goodman’s operation took 150,000 bookings in its first year of operation and now employs around 360 call-centre staff. This year, the company is on course to turn over £200m and break even, something Goodman is proud of achieving after only two years in business.
But now a new competitor has entered the market. Last Friday saw the launch of Travel Shop Direct, a sister operation of the established Travel Channel, on Sky Digital and selected Cable networks.
The new division’s commercial director Gary Wardrope predicted that traditional high-street agents could come under threat from operations like Travel Shop Direct.
“If they embrace different booking methods and are not afraid of technology, they will be OK. But they ignore it at their peril,” he said. “TV is a powerful media.”
Travel Shop Direct hit the airwaves with just 26 reservations staff manning its call centre on the outskirts of Manchester. It is currently selling just Airtours Holidays -Êthe only operator to have yet signed a deal.
Wardrope, formerly with Airtours, is spearheading the operation and insists other operators will soon come on board.
“We are negotiating with a number of operators in all the markets,” he said. “But we don’t want a mass of companies in the same market. We would prefer to have two or three and do a better job.
“Operators initially approached the TVconcept as a way of raising brand awareness. That is still true but they are now more sophisticated and realise they can target viewers with particular products. It’s a big opportunity and does not require them to produce 25 brochures to secure one booking which is a very expensive way of distributing their product.”
Unlike TV Travel Shop, Travel Shop Direct does not have a studio base. It will use two formats – a 15-20 minute video on a destination featuring three or four properties and three-minute ‘teleshopping spots’ sprinkled throughout the programmes.
“We did not want the ‘babes on the couch’ image along with the guy with the Colgate smile gushing about how fantastic a hotel or resort is,” said Wardrope. “We want the picture to tell the story and have interviews with genuine holidaymakers. I believe this will give us more credibility.”
Wardrope said it will sell a cross-section of holidays from packages to ski to cruise, targeting the mid- to upper end of the market.
“Our average selling price will be higher than the high-street agent because the profile viewer of the The Travel Channel is more upmarket and a bit older,” he said. “I expect decent ski and cruise sales.”
He predicted public confidence in direct bookings will continue to grow and anticipated 75%-80% of bookings will be for departure seven or eight months down the line.
He said: “Banking, buying a car and even buying groceries are all now done over the Internet. We are seeing an evolution in user confidence.”
Travel chief executive Richard Wolfe, who set up The Travel Channel six years ago, said there was nothing particularly revolutionary or high tech about the operation. “Basically we are using the good old-fashioned television and telephone to sell holidays,” he said. “We are not relying on viewers being e-commerce compliant.
“It is about families relaxing in the comfort of their own home and watching TV.”
Wolfe predicted Travel Shop Direct would begin to make a profit within three years. “With the Travel Channel, we already have the background and expertise in this media,” he said.
Launched: January 14.
Available on: Sky Digital and selected Cable networks.
On air: 8am-12 noon Monday to Sunday, increasing from 7am-12 noon and 12 midnight-1am from February 1. Teletext offering a range of deals is also available which will be extended to 24hrs a day later in the year.
Staff: 26 at call centre just outside Manchester using reservations staff from Going Places’ Holidayline operation.
Opening hours: 8am-10pm Monday to Friday, 8am-6pm Saturday and 10am-6pm on Sunday.
Predicted viewing figures: around 25,000-30,000 households. Travel Shop Direct is available through an estimated 3.8m households.