TWO of the big four travel groups have launched their
largest-ever peak season campaigns in preparation for one of the hardest-fought
January sales battles in years.
Thomas Cook and TUI UK, spending £4 million and £11
million respectively, have set the stage for an aggressive three months with an
advertising blitz on TV, radio and in newspapers. Meanwhile, First Choice has
spent
£3 million and launched with its ‘I’m a
celebrity…get me out of here’ shop campaign.
The retail-led campaign tactics will mount further
pressure on beleaguered rival MyTravel, which has an “extensive” direct-mail
campaign but no television advertising.
A MyTravel spokeswoman said: “We feel this is a more
targeted approach which suits us at this particular time.”
Airtours Holidays has discounts of up to 25%, while
Thomas Cook tour operator brands have up to 20% off messages.
Observers predict discounts will reach 50%. But one
warned: “They are sacrificing margin for sales. They’ll stick the knife into
MyTravel but if MyTravel went under it would cause problems for the whole
industry.”
A City analyst predicted: “I expect Thomson, First
Choice and Thomas Cook to flood the market with nil deposit holidays in January
and put the squeeze on MyTravel.”
Competitors have denied trying to heap further
pressure on MyTravel but agreed their campaigns could increase their market
share in the early sales period.
Thomas Cook claims its ‘world on sale’ campaign is not
only its largest yet but unprecedented because it applies to all bookings, not
just in-house brands, through its shops. Its offer includes a free flight,
half-price winter holiday, nil deposit, free insurance, vouchers and up to £100
off on adult bookings of over £399 through its shops before January 10. Product
director Nigel David said: “We would be disappointed if we didn’t take some
market share – but that’s not why we’re doing this.”
Meanwhile, TUI UK’s marketing budget includes
extensive advertising of its new no-frills carrier Thomsonfly and the first
interactive ‘whispering windows’, on trial in shops.