News

Agents snub big two to help smaller operators weather recession

Agents are supporting small and medium-sized operators in a bid to prevent total dominance by the big two when the economy improves, it was claimed in a Travel Weekly discussion at Youtravel.com’s VIP trip to Corfu.

The recent downturn in business has seen Tui and Thomas Cook improve their commercial terms for independent agents to allow them to bolster their own businesses.
However, agents said they had been deliberately driving business to smaller operators to ensure they survived.

They vowed they would continue to work with them when things improved, and the big two are expected to revert to less-friendly terms for third-party retailers.

Geoff Andrews, commercial manager of A1 Travel, said: “At the moment Tui is friends with everybody, but we’re telling our staff to support smaller companies such as Jewel in the Crown or Sunvil, because what happens when the big two decide they don’t need us?”

Tom O’Connor, Travelzoo sales director, said smaller operators had most successfully grasped how to use the travel deals website.  “We find our best relationships are with the small to medium-sized travel companies,” he added. “There is a gulf between the big two and everyone else and it seems to be growing at the moment.”

However, James Clarke, sales manager for Teletext Holidays, said that at least one of the big two was working well with the company. “The strongest allocation we have from a package and flight point of view is from Thomas Cook,” he said.

“This year they needed help with their packages. We work with Cook and I hope that will continue. Thomson don’t want to know us, and I don’t think that will change.”

Meanwhile, agents remained concerned that regional flight capacity would not be replaced when the economy strengthens.

Clarke said: “Core airports will get the high capacity because it is less risky for airlines.”

Share article

View Comments

Jacobs Media is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.