A discount-led strategy is a viable option for companies without strong brands, according to Carlson Companies vice-president electronic commerce Steve Endacott.
Endacott claimed a policy of offering discounts to attract holidaymakers was different from a strategy of claiming to be the cheapest in the market.
“But at Inspirations we managed to push people through the doors at Worldchoice by putting up prices by £70 and then offering heavy discounts at £50-off holidays.
“Richard Carrick [Airtours deputy managing director] would have had a fit if someone did that, but it worked because it made people feel they were getting a good deal.”
In a speech on price-led marketing, Endacott criticised operators and agents for making it difficult for holidaymakers to understand the true price of a holiday. “We are comedians when it comes to calculating the holiday price. There are so many add-ons,” he said.
Endacott added that marketeers wanted companies to have a single brand for their tour operations, but said they need to offer a selection of brands so that people had choice.
Endacott criticised Thomson for what he claimed was an arrogant attitude to agents and said it would have to learn to be nice to retailers because it needs them to help sell its product.
He also said Thomson had an inconsistent policy.
“How can Thomson say pay £20 more and then say buy through Lunn Poly with its discount strategy?” he asked.