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THOMAS Cook is embarking on a radical project to measure
the value of its high-street shops.
It wants to look beyond the profits of its 615 outlets and focus
instead on the amount of overall sales generated from exposure of
its high-street brand.
One method being discussed is to track sales generated by the
shops, but which are actually booked through the company’s
various other distribution channels – including the Internet,
call centres and Thomas Cook TV.
In order to track sales, each shop could be assigned an
individual reference code which is placed on brochures. The code
would then be cited when booking over the phone or web.
Managing director for sales Steve Finlan, who joined Thomas Cook
from clothing giant Gap Europe in May, said he was evaluating the
role played by the high street, but wouldn’t confirm a
barcoding system was on the table.
The former Gap UK vice-president said: “I’m looking at the
role the store plays in the psyche of the company, the local
community and the booking process. People go into stores and then
book through other channels. I don’t mind where they book as
long as it’s with us.”
The move has been welcomed by industry marketing experts. Former
TUI UK marketing director Hugh Edwards – one of the five
directors who left TUI UK last month following the shake-up by new
MD Peter Rothwell – said Thomas Cook should be “applauded”
for its approach. “The greatest number of business into a call
centre comes via brochures, which are picked up from agencies,” he
said.
Edwards said a high-street presence is the biggest influence on
consumers who book a holiday. He estimated every 100 prime
high-street locations are worth around £1 million a year in
advertising space.
“It’s because customers recognise the brand from the high
street that they respond to adverts, direct mail or any other
marketing communications.”
Travel Weekly columnist and Marketing deputy editor Danny Rogers
said: “Thomas Cook is going down the right path. The high street is
very important to the travel industry – this is shown by
Lastminute.com’s move into shop space.”
Travel trade union the Transport Salaried Staffs’
Association said the move will help increase staff morale and even
safeguard jobs.
Negotiations officer Jerry Wines said: “People often visit a
travel agent during their lunch break from work. They speak to a
consultant and pick up a brochure, but they then book the holiday
at home over the web or through a call centre.
“This scheme would value the effort put in by the travel
consultant and help to evaluate the benefit a high-street presence
brings to a travel company. There is a real danger that the current
uncertainty concerning the future direction of the industry could
lead to employers chopping away at their high-street presence,” he
said.
Meanwhile, Thomas Cook has overhauled its high-street management
team to boost its retail network’s sales. The company has
increased its head of sales from three to four. Two of the head of
sales roles have been dubbed ‘evolution’ and will focus
on high performing stores. While the other two
‘revolution’ roles will look at the business plans of
the under-performing shops. A further five regional managers,
taking the total number to 32, are being recruited as part of the
restructure.