News

THOMSON has embarked on an aggressive wave of directional selling with sales of in-house operators now accounting for 70% of Lunn Poly’s business.

It is the first time Thomson, now TUI UK, has admitted to such a level of directional selling.

The figure, revealed by TUI northern Europe executive chairman Charles Gurassa, follows a move to integrate its tour operations and retail network under a single structure.

Thomson also spent £500,000 on a training programme before Christmas to boost sales of its Gold, Platinum and Superfamily brands.

Gurassa said the figure was indicative of the way the industry is heading.

“The market has become more integrated - we are happy with the 70% figure,” he said. “The Thomson legacy was to retain strong independent businesses but we have been working towards integration for about 18 months. We are beginning to see the real benefits of complete alignment.”

Gurassa stressed Lunn Poly will continue to offer customer choice and claimed the group was also outperforming the market since Christmas.

According to unofficial industry figures, other major multiples are also stepping up directional selling.

Since Christmas, more than 80% of Going Places’ sales are for Airtours group products, with First Choice accounting for 70% of its retailer’s business and JMC being 65% of Thomas Cook sales. Sources said the levels are up on the same period last year.

The figures also underline how successful the multiples have been in switch-selling from their rivals.

Thomson, with a market share of around 25%, accounts for less than 2% of sales through Going Places, while less than 5% of Lunn Poly’s business is for Airtours.

Going Places is understood to have taken barely one Thomson booking per shop since the start of the year.

But Travelcare accused the group of compromising customer choice.

Head of sales Amanda Williams said customers are unaware of the tactic. “Customers only have a vague understanding of how a vertically integrated group works and they do not really get a genuine choice,” she said.

Advantage sales and marketing director Colin O’Neill added: “Staff are trained to sell in-house products first, regardless of what the multiples say. It could play into our hands as it highlights the independence of our members.”