I THOUGHT I would be on an Iberia jumbo from Madrid to Buenos Aires in Argentina. Instead – and because the Heathrow to Madrid Iberia flight was delayed – I am on a Pluna (Uruguay) DC-10 going to Rio de Janeiro, Sao Paulo, I think, and Montevideo before landing in Buenos Aires, God knows when.
I just hope my luggage arrives with me. I don’t mind the delay too much, as it will give me time to read up about Argentina before I get there.
It’s amazing how many of these columns I’ve written on aircraft at all hours of the day and night.
Anyway, I was reading Travel Weekly’s coverage of the latest Thomson initiative on the way over to Madrid and wondering whether it is a brilliant new concept or an own-goal signalling the beginning of the end of the package tour – which is, after all, what Thomson and the rest of us specialise in.
Of course, this is the second break with tradition the market leader has pioneered. The first was the legendary fluid pricing which, in my opinion, has served to confuse the public and give our profession a bad name.
I can see why they have done it.
Because there is too much capacity, they have not sold enough of it in low season and, knowing that they will have to discount heavily, they do not want full fare paying clients who booked many months ago mixing with the cheapos!
We all have the same problem, especially in low season, and those of us who are cursed with having to work with committed charter flights have no option but to resort to discounting.
A brave move by Thomson, but one which will be slammed by the media and all Thomson’s competitors, who will continue to take business away from them.
Can you imagine the impact when all the extras have to be added on? It will be difficult and time wasting for the agent and aggravating for the client.
A package price is a package price, and that is what the public expects.
Once we start breaking the components down then our margins will be affected and the client will come to question the operators’ overall pricing structure.
We’ve just got back on the aircraft after an hour in Rio de Janeiro. The next stop, we are confidently told, is Montevideo then, after that, Buenos Aires, I hope – although we do not have a flight number for this sector yet.
So, back to Thomson and my belief that their latest initiative spells bad news for the industry in the long term.
In the short term, I hope the rest of us can benefit from sticking to simple and understandable pricing structures.
I have always felt it is my duty to make our often very complicated holidays easy to sell for staff. Angry clients upset morale in the sales team.
I know how I feel when I am confronted with an irate client and I would not wish it on anyone. Of course, what all this is designed to do is to maximise profits.
I would think Thomson will stick to, say, a lead-in £99 discounted flight and accommodation price, and then charge more for the extras. Who cares about the client when the shareholder needs to be satisfied?