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Analysis: Travel brands set for an overhaul – 28 Jun 2007

Cosmos Holidays logo

Thomas Cook logo

The merger of Thomas Cook and MyTravel will herald rationalisation of the pair’s brands, primarily in tour operating but also in the air, and probably in retailing.

The TUI/First Choice merger in the autumn will bring a fresh overhaul. But before that, the UK’s fifth-biggest group, Monarch Travel, will complete a review of its brands that may see some disappear.

The overhaul is overdue. Too few travel companies value marketing and too few brands mean anything to consumers, according to Travel Weekly marketing columnist and PR Week editor Danny Rogers.

“The industry has undervalued brands,” he said. “There aren’t many that stand out and command customer loyalty.

“I would welcome a reduction in the number, but also investment in brands. Marketing has been part of sales in travel for too long. The major tour operating companies need standalone marketing departments.”

Monarch Travel’s Cosmos Holidays brand has been trading since 1962 and the group’s Monarch Airlines is among the country’s best-known carriers. It is unlikely either name will disappear.

But in the words of Monarch Airlines managing director Tim Jeans: “It is incumbent on any group to review rather than fossilise its brands.

“The industry has undervalued brands. There aren’t many that stand out and command customer loyalty.”
“One of the things we are looking at is whether there is leverage with the Monarch name. Flymonarch.com is the seventh-largest travel website in the UK. Equally, Cosmos is making strides online and Avro has resonance with the trade.”

Going Places is probably the most vulnerable high-profile brand in the new Thomas Cook Group. It dates from December 1993, chosen by Airtours – as MyTravel then was – to brand shops acquired from Pickfords Travel and Hogg Robinson.

Former Airtours retail managing director David Burns recalls: “We had to change the names as the Pickfords and Hogg Robinson names continued in use. Going Places was recognisable, conveyed travel and no one was using it apart from a couple of agencies, which we bought.”

Burns does not believe Going Places will survive, despite Thomas Cook chief executive Manny Fontenla-Novoa’s recent statement that the brand might continue.

Burns said: “Why invest in two brands unless you differentiate the product? You duplicate the marketing costs and the overheads, and could be diluting your message.”

In fact, Going Places would have been rebranded as MyTravel in 2002 were it not for the latter’s financial problems. “The rebrand was pulled as the group concentrated on more pressing issues,” said Burns.

The retreat also helped dissociate the Going Places brand from MyTravel, whose troubles were being reported in the financial press.

Burns has no doubt the Thomas Cook name will win out in any brand struggle. “Thomas Cook is the best name in UK travel, if not the world,” he said.

Rogers agreed, but added: “A lot of people still get Thomas Cook and Thomson mixed up. I’m surprised Thomas Cook has not done more with the brand.”

 

Travel brands timeline

1841: Foundation of Thomas Cook, the oldest name in travel
1888: Poly Tours, half a forerunner of Lunn Poly, founded
1898: Dr Henry Lunn organises his first tour to France
1948: Nationalisation of Thomas Cook
1962: Cosmos founded
1967: Launch of Monarch Airlines
1962: Privatisation of Thomas Cook
1980: David Crossland founds Pendle Air Tours, later Airtours

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