Don’t just book it…

THOMAS Cook is embarking on a radical project to measure the value of its high-street shops.

It wants to look beyond the profits of its 615 outlets and focus instead on the amount of overall sales generated from exposure of its high-street brand.

One method being discussed is to track sales generated by the shops, but which are actually booked through the company’s various other distribution channels – including the Internet, call centres and Thomas Cook TV.

In order to track sales, each shop could be assigned an individual reference code which is placed on brochures. The code would then be cited when booking over the phone or web.

Managing director for sales Steve Finlan, who joined Thomas Cook from clothing giant Gap Europe in May, said he was evaluating the role played by the high street, but wouldn’t confirm a barcoding system was on the table.

The former Gap UK vice-president said: "I’m looking at the role the store plays in the psyche of the company, the local community and the booking process. People go into stores and then book through other channels. I don’t mind where they book as long as it’s with us.”

The move has been welcomed by industry marketing experts. Former TUI UK marketing director Hugh Edwards – one of the five directors who left TUI UK last month following the shake-up by new MD Peter Rothwell – said Thomas Cook should be "applauded” for its approach. "The greatest number of business into a call centre comes via brochures, which are picked up from agencies,” he said.

Edwards said a high-street presence is the biggest influence on consumers who book a holiday. He estimated every 100 prime high-street locations are worth around £1 million a year in advertising space.

"It’s because customers recognise the brand from the high street that they respond to adverts, direct mail or any other marketing communications.”

Travel Weekly columnist and Marketing deputy editor Danny Rogers said: "Thomas Cook is going down the right path. The high street is very important to the travel industry – this is shown by Lastminute.com’s move into shop space.”

Travel trade union the Transport Salaried Staffs’ Association said the move will help increase staff morale and even safeguard jobs.

Negotiations officer Jerry Wines said: "People often visit a travel agent during their lunch break from work. They speak to a consultant and pick up a brochure, but they then book the holiday at home over the web or through a call centre.

"This scheme would value the effort put in by the travel consultant and help to evaluate the benefit a high-street presence brings to a travel company. There is a real danger that the current uncertainty concerning the future direction of the industry could lead to employers chopping away at their high-street presence,” he said.

Meanwhile, Thomas Cook has overhauled its high-street management team to boost its retail network’s sales. The company has increased its head of sales from three to four. Two of the head of sales roles have been dubbed ‘evolution’ and will focus on high performing stores. While the other two ‘revolution’ roles will look at the business plans of the under-performing shops. A further five regional managers, taking the total number to 32, are being recruited as part of the restructure.