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Thomas Cook’s single pricing plans could help combat confusion

Thomas Cook’s move to single pricing across high street and online channels has been welcomed for helping to combat consumer confusion.

The UK’s largest travel retailer will offer the same price for package holidays booked online on Thomascook.com, in-store or via its call centres. This applies to its charter brands such as Thomas Cook, Airtours and Manos.

But there could still be variations in pricing across channels for components such as flight-only or room-only.

Cook confirmed before Christmas that single pricing had been introduced following in-store and online trials, and said it would “redefine what consumers can expect from the UK’s largest high street travel retailer”.

Independent agents said the move would help clear up customer confusion. Julia Lo Bue-Said, Advantage leisure director, said: “It’s a very positive move. Price parity is right because they have had a very confusing message from a consumer point of view. At least now it’s clear and positive and I’m all for that.”

The move is expected to have a knock-on effect for independent agents’ commission levels, but a Cook spokesman declined to comment on whether any changes were being considered.

Bue-Said said she believed the end of commission payments to third-party agents was “not on the agenda”.

Tui Travel and Virgin Holidays both indicated they would not be rushed into changing their pricing strategy.

Tui has previously revealed plans to move to a single price strategy, and is also considering changes to its commercial agreements with third-party agents. However, it was not expected to make the move until late 2014.

John Boughton, director of ancillaries and commercial for Tui UK & Ireland, said: “We are examining options for our future pricing approach. Any decision made is based on what is best for our customers and what fits with our business strategy.”

A spokesperson for Virgin Holidays said it had no immediate plans to change its pricing strategy.

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