WORLDCHOICE and Thomson are locked in war of words
following the operator’s move to cut commission on
accommodation-only bookings.
The consortium’s chairman Colin Heal said he would be
seeking urgent talks with Thomson and accused it of failing to
consult members.
Thomson shot back by insisting it had numerous conversations
with Worldchoice.
“This has not arrived out of the blue,” insisted sales and
marketing director Miles Morgan, who added: “Our relationship with
Worldchoice is not the best.”
Heal said: “We are seeking urgent talks with Thomson. I
can’t say I’m surprised as nothing surprises me in this
industry. But there was no consultation. I would never say to
members don’t sell Thomson but would not blame them if they
didn’t. It’s an independent decision.”
While acknowledging Thomson’s need to manage costs, Heal
said the operator should start by sorting out its “grossly
inefficient” brochure distribution rather than slash payments.
“Some of our members are getting too many brochures and some get
none at all. Thomson is wasting large amounts of money. We could
help with this.”
Heal also denied suggestions Worldchoice was performing poorly
for Thomson.
“You have to take into account where we are in relation to
Thomson’s overall performance. We are not very far away from
the overall market.”
Morgan re-iterated comments made by TUI UK commercial director
Derek Jones at the Worldchoice conference in May that sales through
the consortium had been disappointing. “We are working with
Worldchoice’s successful members,” said Morgan.
Advantage sales and marketing director Colin O’Neill
admitted there was increasing pressure on margins.
“We’ve enjoyed a good relationship with Thomson up to now.
It is clearly trying to cut costs across the whole business.
Obviously we want to do deals which incentivise growth rather than
discourage performance by commission reductions.”
Midconsort chief executive Charles Eftichiou said the cuts would
be a blow to members, many of whom were “experts” in dynamic
packaging.
“But we are more concerned that Thomson will actively promote
its accommodation-only site to the public. That would get our blood
boiling,” he said.