THOMSON is to ditch its loss-making Magic Travel Group programme, dubbing it a “problem child”.
Instead it is to launch a Thomson Italy programme, using Magic, Thomson Summersun and A La Carte product with new UK departures, extra hotels in popular resorts, and a beach club hotel in Calabria, also in Thomson’s new family Beach Clubs programme.
The group claimed Magic has “just about broken even” and blamed the cost of marketing and acquiring new customers for its axeing of the operator, bought in 1999.
The current Magic of Italy brochure, valid until October, will be its last – although the brand will be used alongside ‘character’ properties in the new Italy brochure. Portugal and Spain were dropped last year.
Thomson head of product development Stephen Lane said he is confident independent agents will book the Thomson Italy product. “It’s always been a struggle to make money out of Magic. We did stem some losses through careful yield management but it’s not been easy.
“Unless you can offer really good quality and value that market will book direct or do it themselves. Thomson Italy will give the same holiday for 10%-20% less.”
Former Magic Travel Group director Gianni Bonuglia, now managing director of tour operator Aspire, said: “It’s a shame to see such a fantastic brand come to an end. Its brand loyalty and profitability were its strengths, but the market has changed.”
Simply Travel will be retained. It has already been streamlined from 10 brochures to three for this year. Around 25% of sales are now through agents.
Thomson’s Beach Clubs brochure will include all-inclusive properties, offering sporting activities, in Dominican Republic, Mexico, Jamaica, Turkey, Greece and Spain.
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