FEARS have been raised that third-party sales will
plummet through Thomson-branded shops because of an inevitable
increase in directional selling.
Although commercial deals are unchanged, big four rivals say any
fall in their operators’ sales through Thomson shops would
lead to similar declines of Thomson sales through their
multiples.
Observers claim Thomson shops will sell more in-house product,
which has already reached levels of 70% in recent years. A similar
rebranding by First Choice boosted the company’s own branded
products by 5%.
Former Lunn Poly boss John McEwan predicted the rebrand could
mean a fall in overall shop sales.
“Lunn Poly is seen as a broad-based retailer and customers
may think you can only buy Thomson holidays from Thomson-branded
shops,” he said.
But Simpson Travel managing director Simon Beeching claimed
increased directional selling on the high street made the rebrand
logical.
“Increasingly the vertically integrated chains are
‘tied distributors’ – there to rack and sell the
parent tour operator,” he said.
Independent retailers fear they could lose sales of Thomson
Holidays to Thomson-branded shops, while some observers claim
independents will be less inclined to sell Thomson.
One TUI rival said: “I don’t think it will impact
our sales through their shops but third-party agents may not
support Thomson as much.”
St Andrews Travel MD Andrew Dickson added: “We have to be
careful that once customers have a Thomson brochure they
don’t head to their shops for a better deal.”
Travelcare general manager Amanda Williams said it was a
“high risk” policy for TUI and warned it against
alienating its retail partners. “Lunn Poly is a very good
high-street brand that is not just associated with Thomson –
it is a significant player in the non-Thomson market,” she
said.
TUI UK sales and marketing director Miles Morgan agreed
Thomson’s sales could increase through its shops, but
insisted third-party sales were vital.
“It’s not the aim to sell more Thomson but that
potentially could happen.”