The decision to call time on Cosmos is about focus, Monarch Group boss Andrew Swaffield tells Lee Hayhurst
Monarch’s decision to operate a single-brand strategy underlines just how the vision for the company changed after the deal to save it was sealed at the 11th hour.
Since the Greybull Capital refinancing was announced shortly before 9pm on October 24, 2014, as the clock ticked towards a midnight deadline, simplicity has been the watchword for Monarch.
That deal led to Monarch shedding 700 jobs, reducing its fleet from 42 to 34 aircraft, axing long-haul flights and putting a new focus on five UK airports and ‘heartland’ European routes.
This week’s news that the Cosmos brand, a mainstay of UK mainstream tour operating for more than 50 years, will be phased out is a continuation of the work that secured the firm’s future.
Andrew Swaffield (pictured), chief executive of Monarch Group, said: “The restructure and 2014 story was one of simplification. It was really about focus.
“We didn’t get down to this level of detail when restructuring the airline, but now we have returned to profitability, the focus on these areas has been a natural progression.”
Monarch’s new strategy contrasts markedly with ambitious plans the firm had set out only a few years earlier. In 2011, then Monarch chairman Fabio Mantegazza said the company planned to reinvent itself as an online retailer.
As recently as 2013, the take-up of Codegen technology prompted bosses to declare the company was “in the technology race” and would match online agents’ dynamic packaging capabilities.
Swaffield said the technology upgrade was vital, but Monarch now had a “much more straightforward and focused approach”.
“We feel the Monarch brand is better known by consumers and we are pretty confident we won’t lose any customers,” he added.
“We have been referring to Cosmos as part of the Monarch Group all of this year. There has been a transition process.”
Monarch consulted global brand strategists Lippincott, the agency credited with Coca-Cola’s branding.
Clearer branding
Swaffield said Monarch’s move was “completely unrelated” to Tui’s ‘master-brand’ rollout that began last week in the Netherlands.
But he said it did reflect a trend towards simpler branding strategies followed by companies such as Coca-Cola and Apple.
“I spent 20 years at BA, so the importance of brand was drilled into me,” added Swaffield. “I have always had a preference for single, rather than multiple, brands.
“The fact that we did not own the Cosmos brand outright makes a difference, as did the fact that Monarch has high awareness and is seen as quality.”
He said feedback from trade partners suggested Cosmos was not a brand being demanded by customers – more one sold to them by agents.
Swaffield added that the focus on its own short-haul beach, city and ski flying programme would ensure it had hotel product that matched the Monarch brand in every destination.
“The sweet spot for us is four‑star hotels,” he said. “We have some three-star and five-star properties, but our customers have a particular expectation of quality and value we think we can fulfil.”
Trade sales accounted for about 15% of Monarch’s businesses and Swaffield said he was keen to remain in multiple channels.
Although he would be happy to see that proportion rise, Swaffield said trade commercial terms would remain the same and ruled out a U-turn on the decision not to offer price parity online.
“We can’t pay for that, so it has to be funded by customers. We are a fan of travel agents, but also of being financially sustainable.”