Medhotels.com and Holiday Autos head of sales UK and Ireland Teresa Walsh talks to Juliet Dennis about XML feeds, extras and expansion outside the travel trade
In terms of sales, what has been the focus for the lastminute.com-owned Holiday Autos and medhotels.com brands?
We have seen a big shift to business-to-business sales and XML connectivity. Travel agents who originally booked direct with us through the website are now using their own technology with XML feeds.
As a supplier, it’s all very well having an XML feed but you have to make sure it’s stable and there is someone to speak to agents. We decided to invest in that area of the business and our XML response time is now two seconds.
Our web connectivity team has expanded from one person to three in the last eight months and we are trying to increase the amount of product going through XML feeds. We are also investing heavily in our web functionality and will have Google Maps soon.
What plans are there to expand medhotels.com?
We are looking at more long-haul product. Our core big volumes remain in the three and four-star market in Spain, Egypt and Cyprus but we have seen an increase in demand for more niche properties and upmarket hotels.
We are looking to offer Asia and the Far East and already have more Caribbean properties for this year.
Have you noticed a change in attitude among agents as dynamic packaging becomes a normal way for retailers to book holidays?
Agents are more confident about packaging something together and do not mind booking scheduled airlines and accommodation. Customers are also not insisting they have someone at the other end to meet them.
A lot of agents want their own ATOLs because they cannot advertise on Teletext without it, or they are moving to groups such as the Travel Trust Association or Freedom to work under their ATOLs.
We have seen a shift [in sales] from call centres and online agencies because they are investing in technology and they have seen an increase in people booking through their websites.
The biggest growth is in the high street, but they have been slower to engage in dynamic packaging.
Are there plans to get rid of commission in favour of a net pricing model?
We offer a commission-based model, net rates, or net rates without the margins so they can yield-manage margins themselves. A lot of agents are going down that [latter] route but usually the margins are set by head office.
More agents are moving to net prices but in the short term I don’t think we will only offer net rates on products because there is still demand for both.
What is your take on consolidation within the agent sector?
In the short term, it’s business as usual, but it will be a case of wait and see.
We will review it and there will be discussions when the time is right. We will be at the Triton and Advantage conferences.
About half of Holiday Autos’ business is direct and half is through the trade. How successful is the business at increasing its agent sales?
We have won some new accounts such as Travelbag, and extended our deals with Flight Centre and Triton for another 12 months, so we are working on maximising sales from those companies.
Some others might be coming on board soon. Our biggest advantage is our three price propositions in the market to meet all our partners’ needs.
Are you looking at ways to increase business outside the trade?
We have not been perceived as a strong business-to-business player and we are looking to get more strategic partnerships in place. There are lots of opportunities with airlines and other companies to expand our business.
We are in talks with a high-street retail name that is not in travel at the moment. The biggest growth is with airlines but there are also other businesses such as the Post Office that work in travel.
It’s more a case of raising our profits – the trade is still a core part of our business. Nearly 95% of our medhotels.com business is trade and 50% of our Holiday Autos sales.
Is it hard to get agents to sell car hire as an add-on?
Agents recognise they have to have car hire and that it’s a revenue tool. Most retailers do not have car hire on their websites, but are now starting to add it. Some agents are realising it’s important but for others it’s just an afterthought.
We still need to educate agents. Some are earning so much just by having a tool on their website to sell car hire. We try to get agents to offer it at any touch point they have with the customer and make sure they mention it at all stages to maximise sales.
Profile: Teresa Walsh
Age: 38
Lives: Birmingham
Education: Travel and tourism course, Solihull College
Employment history
2006 to now: Medhotels.com/Holiday Autos head of sales UK and Ireland
2000-2006: Head of sales UK and Ireland, First Choice
2000: Key account manager, Sunquest Holidays
1997-1998: Sales and marketing executive, Cellet Travel Services
1996-1997: Sales executive, Argo Holidays
1991-1996: Travel agent, PAB Travel, James Travel
