Independent travel agencies need to be more innovative and sell more additional services, according to TUI Travel UK managing director Dermot Blastland.
He said agencies need to update their business models and offer more value to their customers by selling services such as transfers, valet parking and currency exchange.
Blastland said: “It’s not just about selling a Thomson holiday; you have to work for it.” He said the focus for TUI Travel, which owns Thomson, was to achieve early sales through its distribution network of retail, online and third-party agents. “There is lots of value in someone who can bring us early sales,” he said.
“If you perform and support Thomson and First Choice you will get paid what we consider a good rate. “There is not enough innovative thinking,” he added.
Between 25% and 30% of TUI’s sales come though independent travel agents.
Blastland also raised concerns about the higher commission rates paid to some agents who were members of consortia. He argued that the top agents deserved high commission rates, while some consortium members are taking these commissions without supporting Thomson.
Blastland said travel agents should be more creative about how they sell holidays and offer TUI Travel some new ideas on selling. “We would not mind a sales pitch coming back the other way,” he said.
He said homeworkers were “highly motivated and clever.” Blastland also revealed that TUI Travel is considering giving commission to shop staff for web sales in their postcode area.