An email revealing the intense pressure on The Co-operative Travel retail staff to sell in-house product above all else highlights the conflict that can occur when agents turn operators.
In a strongly-worded memo leaked to Travel Weekly by an unhappy employee, The Co-operative Travel managing director Mike Greenacre demanded staff make a concerted push on Co-operative Holidays, which has suffered disappointing sales in the run-up to the 2010 peak sales period.
Independent ethos can be compromised
The suggestion that staff should sell in-house product over other operators’ holidays has prompted concerns that agents’ independence could be compromised.
“How can we continue to call ourselves independent when we are being forced to sell Co-operative Holidays above and beyond anyone else, regardless of whether it is right for our customers?” asked one Co-op agent who asked to remain anonymous.
“The independent ethos that our business clings to is being compromised.”
From Travel Counsellors to Barrhead Travel, more and more agents are launching their own tour operations to ensure they remain competitive in a difficult market.
As the big two concentrate on direct-sell strategies, some agents feel self-sufficiency is the only option.
But is it possible for agents to sell their own product and still claim to be independent?
Speaking to Travel Weekly, Greenacre said his operation amounted to just 2% of total bookings. “We still offer the widest possible choice of holidays to consumers on the high street – we sell more than 1,500 suppliers.
“We are clear about our independence. We know we have to sell the right product and that there’s no point in selling holidays that customers don’t want. But if we have our own product, that means we take on a financial commitment and we have to see that through to the end.”
Choose what’s best for clients
Travel Counsellors is also continuing to grow its in-house tailor-made tour operation, Suitcase. The quality of the in-house operation is a key factor so that agents are comfortable supporting it, said Travel Counsellors managing director Steve Byrne.
“We encourage Travel Counsellors to choose whatever is best for their clients. A lot of people come to work for us because they didn’t like the directional selling in previous jobs. It is vital that Suitcase can compete on price and quality with every other operator.”
Damaging the delicate relationships with operators such as Thomas Cook and Tui is another concern for agents.
Barrhead Travel chairman Bill Munro recently started a small tour operation, mainly to meet cruise ships in Barcelona and Palma, and to replace lost capacity from the collapse of Globespan.
He said: “If you have your own package holidays there is potential conflict, without doubt, and it would damage your relationships with operators. That’s why we wouldn’t expand our tour operation past a specific need.
“However, even independents have loyalty to particular tour operators – staff have their favourites.”
Good relationships are vital
Hays Travel managing director John Hays put his own tour operation Hays Faraway on hold. “It was because of the recession and various other reasons – we are doing well without needing to have our own product. It’s important to us to have good working relationships with other operators.”
Classic Collection managing director Nick Munday said in-house operators were just another source of competition. “Our competition runs into everyone from ba.com to hotels selling direct so if agents want to have a crack, that’s not a problem.
“However, some people don’t realise how complex running a tour operation is. When the market is difficult people start to become predatory and that puts pressure on the thin pieces of string that hold the supplier chain together.”