A partnership is only likely to be successful if both parties benefit. So when Midcounties Co-operative boss Alistair Rowland says 60% of sales of Jet2holidays from Birmingham – Jet2’s new base – are new to the retail group, theirs is obviously a winning partnership.
Jet2holidays has enjoyed phenomenal growth since its launch in 2007, with annual carryings now of 2.2 million. The success is partly down to its embrace of the trade and support for agents. As a consequence, agent sales have grown along with it to comprise one-third of holidays sold.
I can’t help but contrast this with the new Ryanair Holidays, launched last week by the budget airline in partnership with online agent Logitravel, which will provide Atol protection. Far from working with the trade, Ryanair dedicated itself for years to squeezing out agents.
Rowland describes Ryanair as “anti-agent” and doubts Ryanair Holidays will prove as successful as Jet2holidays without trade support. After all, who has more experience or is more adept at selling package holidays?
The end of another trade partnership came in sight this week when The Co-operative Group served notice on its joint venture with Thomas Cook. Many viewed the five-year-old deal as one-sided from the outset, with The Co-op quitting travel but guaranteed an annual income from its former shops, while retaining the right to enforce completion of their purchase on Cook.
Thomas Cook ended up with duplicate stores in many locations, substantial numbers of which it has closed. Presumably, the deal had attractions back in 2011. But Thomas Cook, its management and strategy have changed substantially since. The partnerships it values now lie elsewhere.