ALL vertically integrated companies are expected to be given a two-month deadline to display their names on the front of their travel agencies.
The Office of Fair Trading is coming under severe pressure from the Government to make the multiples display their ownership links to the public quickly.
The Government has become increasingly frustrated at the inability of the big companies to agree a common strategy after insisting on greater transparency in the travel industry when it published the Monopolies and Merger Commission report in December 1997.
“The OFThas run out of patience with the big companies,” said a Government source. “It does not want to wait until mid summer, because people go on holiday and then it will be the autumn before it is resolved.”
Government officials have warned that if the big companies cannot agree a strategy, it will not hesitate to introduce legislation to force vertically integrated companies to display their ownership links on the front of their shops.
The Government source said:”If the matter is not resolved then the Government could force legislation on the industry, which could go through very quickly.”
An OFTspokesman said talks with operators were still continuing. The Government has already said shops will be able to display their ownership links in their windows rather than having to replace their fascia.
Both Thomson and Airtours have embarked on a policy of having more than one brand on the high street. But, after transparency rules are introduced, Travelworld, for example, would have to say Travelworld with the words “part of the Airtours group” in the window.