THOMSON and Thomas Cook are working towards a Preferred Agent deal 15 months after a total breakdown between the two companies.
An internal memo sent to Thomas Cook’s 800 shops has instructed staff to stop selling away from the market leader and begin pushing its products. The move has already seen Thomas Cook’s share of Thomson business increase from around 6% to 9%.
The thawing of relations follows a more conciliatory attitude from Thomson – which has watered down its strict Preferred Agent criteria – and a realisation from Thomas Cook that it needs the business of the market leader. Thomson sales director Manuel Mascarenhas said:”The market has changed and personalities have changed.
“We are trying to work towards a Preferred Agent agreement and there seems to be a willingness on both sides to do this.
“We have relaxed some of the Preferred Agent criteria and I believe Thomas Cook would prefer to be selling Thomson products.”
It is believed Thomson will start offering tactical deals and incentives to Thomas Cook staff.
Thomas Cook commercial director Mike Beaumont admitted staff will stop switch-selling from Thomson. “We have a new and possibly developing relationship with Thomson,” he said.
The breakdown in relations came after Thomas Cook failed to sign for Thomson’s Preferred Agent scheme last year despite being strong supporters of the market leader.
Sources said Thomas Cook was fed-up with the market leader’s arrogant behaviour and the tough demands of the scheme.
As a result, Thomas Cook began switch-selling from the operator which led to its share of Thomson’s business falling from 15% to 6%.
Industry observers, however, said by increasing Thomson sales, Thomas Cook’s own in-house operator JMC could suffer.
“Thomson is an easy sell for Thomas Cook as customers put the two together,” said one.