Travel agents alarmed by the appearance of operators’ own shops and outlets in their towns have been assured that, far from damaging their business, they are likely to provide a boost to sales.
The trend for operator-branded outlets has been led by Kuoni, which currently has 10 shops in the UK and aims to double that number, and Virgin Holidays, which has announced plans to grow its retail outlets from 21 to 40 within 18 months.
Both operators claim they are as sensitive as possible to local agents when opening outlets.
And they claim they have the figures to prove rival shops will see an uplift in sales as a result of the arrival of another travel shop.
Derek Jones, Kuoni’s distribution director, admits that while the policy has been driven by the operator’s need to grow its own high street distribution channels, he has been conscious not to put agent partners’ noses out of joint.
He said: “The high street programme is a specific response to the multiples’ move away from selling us.”
Jones added when Kuoni opened a shop, rival travel agents in the region benefited from the increased awareness of its brand.
Independent retailers within a six-mile radius of the Nottingham store had seen a 48% increase in Kuoni sales since the shop opened three months ago, he claimed, while overall trade sales had increased each month since the shop programme started two years ago.
Chris Roe, sales and distribution director for Virgin Holidays, added that rival agents also benefit from consumers’ increased awareness of the operator’s featured destinations, while regional flying programmes also get a boost thanks to the operator’s marketing budgets.
While he would not reveal figures on the impact the programme is having on other agents, he said it had been positive, stressing the importance of communication in ensuring rival agents support the shop openings.
“We obviously have discussions with our preferred partners as to why and what our strategy is for that area,” he said.
“When we’ve shared data and gone through our plans the numbers speak for themselves.”
Jones said it was also important to ensure staff in the Kuoni shops understood their role in the store.
“We make it very clear in our agent training that they’re not there to compete with local travel agencies – they’re there to support them,” he said.
“And if a local travel agent wants to book a holiday with Kuoni, our staff have to help them with that. You also won’t see a discount message in our agencies’ windows. We won’t advertise on lowest price, as the whole shop is about offering service.”
Julie Lo Bue-Said, Advantage’s leisure director, said she had noted the positive effects of such openings for her members and
the consortium is now planning to work more closely with Kuoni.
“It is about trying to leverage the local opportunities. Where we’ve got Kuoni shops and some of our own members, we are wondering if there are joint initiatives that would benefit all involved,” she added.
- Do you work in any agency near an operator’s own shop? Tell us if it has had an impact on your business. Email ed.robertson@travelweekly.co.uk