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‘Price focus is plain dumb’: How Trafalgar’s Tollman turned coach tours around

Trafalgar chief executive Gavin Tollman claims evolutionary changes in the escorted touring sector are helping to dispel old sterotypes about coach tours.

The boss of the touring specialist said the company had developed concepts that were driving repeat customers in a tough economic climate and stealing rivals’ business across its six core markets worldwide.

The operator has created tours more akin to relaxed multi-centre holidays, offering experiences such as meals with local families in their own homes on every tour.

Clearly, something is working. Trafalgar’s UK sales for 2011 are up 9% and 2012’s target is for a further 7% increase despite no signs of an improved economy.

Tollman is adamant the figures are not based on slashing prices. In fact, he says to focus on price would be “just plain dumb”.

“The pie is not growing; there are not going to be more people travelling next year. But I want a bigger share of that pie,” he said.

“Our competitors are focused on price but that’s just plain dumb.

“You don’t need to go to Oxford University to understand that as you decrease the price you take more out [of the product] and decrease the amount people get out of their experience.

“I see it in the opposite way; I want to give more value and make the experience more robust.”

Tollman is challenging rivals to follow his lead, but says many have already chosen to adopt more all-inclusive and city-break touring models.

“I want to transform this entire industry and move away from selling nuts and bolts,” he added.

The decision to shake up the traditional coach holiday model followed “troubling trends” three years ago that showed an increasing number of companies fighting for market share and fewer under-30s willing to consider an escorted tour, said Tollman.

This threatened the “long-term sustainability of the business model” and was compounded by feedback from independent consumer forums showing customers were not interested in coach tours: they disliked packing and unpacking each day, early morning starts and “feeling like a tourist”. They said it was the friendships and experiences, rather than the organisation and service, that stood out.

“If we look at what people like most about us, we need to do it on steroids,” added Tollman. “We need to change the dialogue with our customers and make sure they have experiences they couldn’t have if travelling on their own.

“We have to dig deeper than the guidebooks and be the insider.”

Over the past three years the company has introduced concepts such as Be My Guest, offering visits and meals in local family homes, and Hidden Treasures, arranging visits to little-known sights.

“These are not always easy to organise – so I’m the most hated man with some of our product guys,” admits Tollman.

“But it’s about understanding what life is like in a destination, not just skimming the surface of the culture.”

The company introduced its At Leisure tours this year, and has nearly doubled them to 28 for next year. These include average stays of two to three nights in each destination, avoid early starts, involve less time on a coach and give clients more free time.

Ask Tollman what he’s most proud of and he’ll give you the figure of 89%. “That’s the percentage of people across our 2011 At Leisure tours who had never travelled with Trafalgar before,” he said.

And his biggest regret? That he didn’t have the confidence to roll out more At Leisure tours. “I didn’t bet highly enough on the At Leisure concept,” he added.

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