THOMAS Cook has admitted it can offer cheaper holidays through the Internet than its high-street locations after becoming the first multiple to launch an on-line bookable site.
More than two million holidays are available across a range of in-house products including JMC, Neilson and Thomas Cook Holidays.
Rival operators’ product will be available on Thomas Cook’s site within two months although it will not be bookable on-line. Further developments, including moving images of resorts and commentary, will also follow shortly.
Interactive business director Bill James said some of the cost savings in selling through the Internet may be passed on to the customer. “You can save administration costs by selling on-line in that you are cutting out the agents’ booking process. It gives us the option to offer lower prices.”
Work on providing a bookable site has been on-going since last summer. James declined to reveal the level of investment but said it had been “stepped up considerably” in the past year.
“E-commerce is hugely important. Our previous site enabled customers to get to a certain point before making a telephone call and hundreds were booking every week. I expect that demand to increase dramatically with the latest development,” he said.
Industry observers said, however, that it could face transparency issues if customers are not made aware that the site only offers Thomas Cook-owned product.
The Government is trying to implement recommendations from the Monopolies and Mergers Commission to make multiples display their ownership links on shops windows.
“It’s an interesting question but I think it is transparent enough as it links into our corporate site which names our in-house operators,” said James. “In six to eight weeks, we will be offering third-party products although it won’t be available on-line. To offer that we need to link into other operator systems which at the moment is very difficult to do.”
He stressed that the site will extend Thomas Cook’s business rather than cannibalise it, adding that 50% of customers who booked through the Web site were new customers.
He said target booking figures were “challenging” but refused to reveal figures.
“We had four bookings in the first day,” he added.
n On-line booking offering 2m holidays.
n Late deals are updated three times daily with core product updated daily. Also enables hotel and car hire booking together with an expanded range of flights.
n Real-time information – including weather, snow reports and a worldwide five-day forecast.
n MapQuest – enabling customers to visit areas down to street level in any developed country.
n Travel information – from the Rough Guides and Thomas Cook’s guidebooks.
n Suitcase – a magazine featuring travel features written by celebrities, plus advice and news.