I READ with interest the Thomson payments to its management team following its market flotation (Travel Weekly April 5) which, to say the least, seems exorbitant.
Having been involved with Thomson since itsconception, it’s ironic that we, the independent agents, who have supported the company from day one and helped it achieve its present-day position as industry leaders, are the only ones who have not benefited.
I sat next to former Thomson managing director Charles Newbold at his first ABTAconference, as far back as Toronto, where he indicated to me that his role in Thomson was to expand the operator’s market share at any cost.This was achieved through hugediscounting at Lunn Poly, where growth was primarily achieved by the linking of compulsory insurance at inflated prices. The independent agents’ margin was thus eradicated if they matched the discounts, as there was no deal for volume-producing independents.
For us, there was a light at the end of the tunnel with the Office of Fair Trading decision regarding the non-linking of the insurance to discounts. For a while, I thought that we would be able to compete on a nearly level playing field. However, its acquisition of smaller companies, and the ability of its in-house retail chain to demand higher commission from touroperators, has wiped out any short-term advantage.
At the end of the day there is no reward – even for Thomson’s Preferred Agents – as they cannot hope to match the growth of Thomson’s own organisation. It seems the rewards for loyalty and growth are only for the directors and shareholders and not for theindependent agents and Thomson’s own staff who put them at the top of the tree in the first place. However, Iam sure this won’t worry Thomson chief executive Paul Brett and his team who seem to have won their own in-house lottery. I am also sure that the demise of the independents will be the last thing on their minds when they jet off with their shareholders’ discount.
Patrick Murphy, managing director, Thornton’s Travel Service, Bristol