The Co-operative Travel Trading Group is considering creating its own tour operator as the trade battles with lower commission payments.
Chief operating officer Mike Greenacre said the option was being reviewed by the commercial buying group as it undergoes a strategic review across its business.
If approved, work on creating the tour operator could start as early as August, although no decisions have been made.
Greenacre, who revealed plans at this year’s Freedom Travel Group conference, said: “It’s one of the strategic options we might explore in detail in relation to working with vertically integrated operators.
“Strategically, we are likely to look at what tour operating might mean for CTTG as we think it’s a possibility. As part of our strategic review we’re looking at all possibilities.”
He admitted the review came as the trade was in turmoil following Thomson Holidays’ decision at the start of the year to cut commission to 7%, followed by First Choice Holidays dropping agent payments to about 8%. Other independent agents, such as the Triton Travel Group, have already set up their own mass-market tour operators as a result.
Greenacre added: “Most of what we’ve been looking at is in the light of what’s going on in the trade.”
But he stressed CTTG would talk to its supplier partners before launching any new businesses.
Jacobs Media is honoured to be the recipient of the 2020 Queen's Award for Enterprise.
The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.