quently allow you to charge a premium price. “It’s a virtuous circle, because you can earn more and then invest more in the brand and the produce,” said Powell.
“But the cycle can go backwards – in this business I think it has gone back enormously.
“We have reduced prices to fuel demand, which weakens the consumer perception and leads to a complete reliance on price.”
Powell’s comments appeared to conflict with Thomson Travel Group’s policy statement at its annual general meeting last month, when the group said it would increase capacity at the lower end of the market in response to Airtours’ bid for First Choice.
But in a question and answer session after his presentation, Powell said he was not able to answer any questions relating to the group’s statement at its annual general meeting.
Powell said operators like Thomson can achieve higher prices through its brand when perceptions change and when it can differentiate its products and services from rivals.
Powell said travel companies can invigorate their brands by treating customers like individuals and making their services stand out.
He said it was important that everyone in a company knows what its brand means and how they can enhance it.
Powell disagreed with comments made earlier at the conference by Airtours deputy managing director Richard Carrick, who said people were inherently unhappy.
“At least 95% of our customers have brilliant holidays,” said Powell.
“What we do for people is incredibly important.”
Thomson deputy managing director Shaun Powell attacked the industry’s reliance on a price strategy and said companies should concentrate on developing their brands.
Powell said brands were vitally important because they persuade customers that your products are better and consequently allow you to charge a premium price. “It’s a virtuous circle, because you can earn more and then invest more in the brand and the produce,” said Powell.
“But the cycle can go backwards – in this business I think it has gone back enormously.
“We have reduced prices to fuel demand, which weakens the consumer perception and leads to a complete reliance on price.”
Powell’s comments appeared to conflict with Thomson Travel Group’s policy statement at its annual general meeting last month, when the group said it would increase capacity at the lower end of the market in response to Airtours’ bid for First Choice.
But in a question and answer session after his presentation, Powell said he was not able to answer any questions relating to the group’s statement at its annual general meeting.
Powell said operators like Thomson can achieve higher prices through its brand when perceptions change and when it can differentiate its products and services from rivals.
Powell said travel companies can invigorate their brands by treating customers like individuals and making their services stand out.
He said it was important that everyone in a company knows what its brand means and how they can enhance it.
Powell disagreed with comments made earlier at the conference by Airtours deputy managing director Richard Carrick, who said people were inherently unhappy.
“At least 95% of our customers have brilliant holidays,” said Powell.
“What we do for people is incredibly important.”