EX-MYTRAVEL boss Steve Endacott has warned high street
travel agencies are under threat from the rapid growth of tour operators’
direct-sell businesses.
Endacott – who left MyTravel in September and plans to
set up a new business – said the Internet was far less of a concern by
comparison.
“We’re seeing the erosion of the high street, with the
biggest threat to shops coming from operators selling direct.”
“If I was a retailer, I’d be looking at the direct
channels as my main concern given that these businesses naturally grow each
year.”
Endacott would not be drawn on the level of sales now
coming from the big four’s direct-sell businesses, but sources claim it could
be as high as 15%-20% of overall business as repeat customer levels increase
each year. Many direct call centres are thought to have 40% repeat customer
rates.
Many agents admit there is an increasing threat from
operators whose products they sell.
Ilkeston Co-op Travel managing director Chris Smith
said: “Business conducted through the retail environment is being eroded. The
biggest threat is not the Lastminutes and Expedias of this world, but the
operators themselves.”
He said it was up to retailers to convince operators
it was pointless having good distribution and then “constantly trying to erode
it”.
Midconsort chief executive Charles Eftichiou said:
“Direct sell is our biggest problem. Retailers are becoming more aware of it
and some of our relationships with the big companies are diminishing.”
But Advantage head of commercial Julia Lo Bue-Said
suggested many operators were using the trade for the first time.
Meanwhile, Worldchoice commercial director Keith
Wilson said the biggest threat was from homeworkers, who were able to discount
more.
Operators said they were simply using a range of
channels.
Thomas Cook director of trade relations Ian Derbyshire
said: “We’re covering all distribution aspects. We still believe in the high
street.”