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TUI UK is to rebrand its entire Lunn Poly network as
Thomson to create one “powerbrand” across all its
businesses.
The decision to ditch one of the most well-established travel
brands follows months of deliberation by TUI UK and sweeping
cost-cutting measures, with 800 job cuts already announced.
All shop fronts will be rebranded Thomson by December 26 for the
peak sales period and Lunn Poly TV will become Thomson TV. Airline
Britannia has already changed to Thomsonfly, covering charter and
low-cost flights.
Meanwhile, the travel giant is rolling out limited Internet access
to all shops as it prepares for increased dynamic packaging through
its retail network.
TUI UK sales and marketing director Miles Morgan said marketing and
advertising spend could now concentrate on Thomson to promote the
shops, tour operation, airline, call centres, TV channel, brochures
and website.
“From a marketing perspective this will give us more spending
power. Moving to a single brand is much more cost-effective and
that’s the way the world is going,” he said.
He admitted it could mean increasing sales of Thomson’s own
product through its shops but denied consumers would think the
branches only sold Thomson holidays.
“It’s possible in-house sales will go up. The aim is to
have a profitable retail estate and it’s important we offer a
full range. People will still come to book – the Thomson name
will not change that.”
The sudden announcement, made to shop managers at TUI UK’s
distribution conference in the Costa del Sol, has received a mixed
trade reaction.
While many support the logic of following high-street rivals and
putting marketing muscle behind one brand, others claim Thomson is
moving to pure directional-selling and warn commission to
third-party agents will be slashed.
On Holiday Group founder Steve Endacott claimed the rebrand was a
“trash and burn” strategy which would lead to more
directional-selling.
He predicted commission cuts to 7% for third-party agents selling
Thomson within six months. TUI’s Irish tour operator Budget
Travel halved commission to 5% last month (Travel Weekly October
15).
Endacott argued a similar move would lead to significant savings
for TUI UK.
“Thomson is looking to drive up its own sales so it
doesn’t need third parties. Then it can cut
commission,” he added.