Agents face threat from direct, says TUI

By Sarah Thomas

AGENTS must focus on customer service to counter increasing competition from direct brands, according to TUI northern Europe chief financial officer Will Waggott.

Speaking at TUI AG’s full year results for 2002, Waggott said divisions such as Thomson Direct grew substantially, forcing agents to focus on offering added-value service to maintain their market share in the long term, he said.

Bookings last year showed an “increasing proportion migrating towards direct brands,” according to the 2002 annual report.

Direct distribution is an area planned for expansion in line with growth for 2003.

Waggott described agents as an expensive channel, while web-based products were doing well because they are a much simpler medium.