The Co-operative Travel agents have been warned they must sell thousands of remaining holidays from the company’s own tour operation this summer or face “severe cost-cutting”.
An email sent by managing director Mike Greenacre to the 400 retail stores – leaked to Travel Weekly by a disgruntled Co-op agent – reveals Co-operative Holidays, which launched in July 2009 in a joint venture with Cosmos, is underperforming, with a high volume of seats still unsold for this summer.
In the email, Greenacre warns agents: “Sell Co-op Holidays now like your livelihood depends on it for that may well be the case.”
If sales failed to improve, Greenacre said he would go into “inquest mode” to find out which agents are selling other operators’ product when they could be selling Co-operative Holidays.
He said one option was to charge back the net loss across the business, adding: “(This) will create a loss-making position for many branches and this will impact on bonus and incentives for individuals.”
Agents said they would continue to support the product 100%, but one agent said: “The consensus among staff is they are flogging a dead horse, as it just doesn’t compete when it comes to choice and quality.”
Greenacre told Travel Weekly: “For any new venture to be selling in excess of 40,000 passengers in its first season is quite an achievement.
“Given the need to drive sales I felt the time was right to address staff in a fairly frank and open way, and I am sorry if this caused any offence.”
He said the quality of the product had improved in the latest brochure.
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