Travel agencies to become web support centres

THOMSON’s agressive Internet strategy will see its high-street stores evolve into web support centres to help customers book online.

Sales and marketing director Miles Morgan revealed the plans to dramatically overhaul agents’ roles but denied its web strategy, which is three years ahead of schedule, spells the end of its 750 shops, which employ 4,500 full and part-time staff.

Despite this, observers say the strategy looks like a way for “agents to talk themselves out of a job”.

This week, the company revealed half of all Thomson sales, including Thomsonfly, are now done online, a benchmark it expected to achieve in 2009. This puts it ahead of Thomas Cook, First Choice and MyTravel, for whom the web accounts for no more than 25% of bookings.

Direct sales through Thomson’s website, call centres and shop network are predicted to rise from 55% in 2005 to 74% this year after it slashed commissions to independent agents in November.

A web-based system will also ultimately replace viewdata and global distribution system technology in Thomson agencies, with agents becoming web helpers, guiding consumers through Thomson’s online booking process.

Triton consultant and Global founder George Begg said the change of role could mean Thomson agents will be “talking themselves out of a job” by helping customers to navigate the website. Agents who help a customer to book online in-store will still receive commission, but not if customers book from their own computers. Morgan argued showing customers the site would not stop clients from returning to agents to make a booking.

“There is already a large amount of cross-selling between shops and the web and this will be no different. People will still want to talk to an agent.”

Advantage managing director and former Lunn Poly boss John McEwan branded it a high-risk strategy that “begs the question of the long-term future of their retail estate”.

Morgan said the profitable shop network will not decrease, adding the strategy needed a heavy high-street presence to be successful. He argued its retail estate gave Thomson a competitive edge over online rivals.