AIRTOURS has admitted that its controversial alliance with Advantage Travel Centres is failing and revealed there was even a downturn in sales when the franchise was first launched.
Managing director Chris Mottershead said he was unhappy with the progress of the tie-up and was looking for a rapid improvement.
His outspoken comments follow a negligible increase in sales despite enhanced commission rates and a £4m advertising campaign which kicked off in August.
“We have made it commercially worthwhile [for Advantage to sell Airtours Holidays] but the volumes they are providing are not great. It’s not working at the moment,” said Mottershead, speaking during an interview with Travel Weekly editor Jeremy Skidmore at the Midconsort conference in Palma.
He said: “I expect volumes to be considerably better. There has been a very small percentage rise which is why I am not happy.”
Mottershead said during the first months following the launch of the franchise operation last April, sales of Airtours Holidays through Advantage members actually fell. “The next 12 months are crucial,” he added.
Figures obtained by Travel Weekly since the interview show that Advantage’s share of Airtours Holidays’ bookings has gone down from 3.3% in 1998 to just 3% this year.
In the year to September 31 1998 – before the franchise was launched – the consortium produced 66,000 bookings for Airtours Holidays, split evenly between future franchised agents and non-franchised agents.
This year sales fell to 60,000 with bookings from non-franchised agents dropping to 27,000 and sales from franchised agents only level at 33,000.
Advantage managing director Ron Muir refused to comment on the figures but defended the alliance.
“We think this is reflecting a difference in expectations,” he said. “But from the information we are getting we understand it is going ahead in a very positive manner.”
Meanwhile Mottershead said Going Places would expand by some 50 shops, with 25 added over the next 12 months.
n See Comment, page 6; Viewpoint, page 11; and Midconsort conference reports, page 22 and 23
TABLE: Clash: Airtours Holidays managing director Chris Mottershead, left, has angered Advantage managing director Ron Muir