The Office of Fair Trading is looking for the public's views on the merger of Thomas Cook and Co-operative Travel.
Do you think the merger is anti-competitive? is it good or bad news for the travel sector?
(See the story here http://www.travelweekly.co.uk/Articles/2010/11/11/35244/oft+seeks+comments+on+cook+co-op+merger.html)
Welcome back, hope all went well?
I have created many websites, including for cheap cruises, cruise deals and a new one attacking cruise holidays.
I think there are more problems here for Independent operators here rather than other travel agents, and for the consumer this may shrink choice as head office may start to push there own in-house product. With TC also owning brands such as Gold Medal and Elegant Resorts etc.
However as an independent, I can clearly see that this is a time for us to flourish and show our true independence.
I do have some concerns, ie the freedom of Freedom Travel, will there members be truly independent or will they have to directionally sell and the same question really concerning PTA, there homeworker division - perhaps they should be made to sell these off.
Also I think it is highly outrageous that they be allowed to use the name Co-operative. This brand means something different than Thomas Cook. THe Co-Op brand (both in and out of travel) have different values from 100% for profit companies like Thomas Cook (there is nothing wrong with 100% profit co's), but they have different values, and this is surely mis-leading and confusing the customer. If they are Thomas Cook, be proud and use that name.! Dont be a woolf in sheeps clothing so to speak.!
I have to say I agree with Nick again. The message being sent out is "Co-op will be independent" followed by "we expect they will be selling 80% Thomas cook products".
Independent
It seems that if you wish the staff of the Co-op to push Thomas Cooks products you are not independent you're controlling.
Having worked in the travel industry since the early 90s, I have witnessed many changes.
I agree with the comments of others regarding the OFT and their investigation in to the merger of Thomas Cook and the Co-operative.
As an independent myself, I personally believe that this merger is yet another step in our industry for a dominent force to sell their product direct where possible.
It is not just this merger that requires investigating as to whether an unfair advantage is being obtained. The entire travel industry is long overdue a health check.
When you look at the past mergers where the big 4 became the big 2 (Thomson/First Choice, Thomas Cook/Airtours), was that beneficial to the industry or the British economy? It enabled the companies to combine their product, it eased their attempts to sell direct, it led to job loss and shop closure and ultimately their drive for directional selling and to gain as many customers direct, placed a disadvantage on independent agents who had for years supported them to become the big forces that they are. To me this is not "fair trading" as it provided these forces with an injection of power to their already grande status.
Internal directional selling and direct selling by suppliers needs to be addressed, together our industry can be stronger than each supplier attempting to kill the independents that once fed them from our industry.
Direct selling as it is now provides the consumer with cheaper overseas travel as most suppliers dealing in this way are discounting their direct prices by the same amount that they would pay an agent commission. How long will that continue to benefit the consumer for though? Greed will kick in and when passenger levels meet and exceed supplier manageable capacity, those offers of direct discounts will reduce.
Travel businesses will continue to fall, jobs will be lost which will do nothing for our governments employment figures or our struggling economy.
Independents are already struggling to be competitive, when will this unfair advantage end? Please do not get me wrong, the best price is not everything, providing our knowledge and exceptional customer service is valued by some consumers too.
I doubt whether there has ever been a level playing field in travel, but it is far more unfair now.
I mentioned the industry requires a health check earlier. It fails me why the British Government, CAA, ABTA have not imposed restrictions on discounting which has been a problem in travel long before I joined the industry in the early 90s.
Something that needs addressing with urgency is consumer financial protection. Bigwigs have previously suggested £1 levys etc but what would ideas like this achieve? The answer would be very little. What exactly is the package holiday directive going to achieve that ATOL fails with now?
The emergence of low cost airlines whilst creating opportunities for the consumer, has also created industry problems. Personally I have embraced dynamic packaging but I feel increasingly insecure as to the service I am providing to my own clients, escpecially concerning their financial protection.
Some travel firms do false advertise. Holidays are being advertised at nett and below. It is criminal not just to the consumer but also to themselves, which in my personal opinion was proven a few month ago by certain collapses.
If discounting and advertised pricing was controlled with suppliers, agents and airlines alike, profit margins would be greatly improved and we could all afford to pay in a few pounds to trust funds for each and every passenger. Further more with greater profit margins, their would be fewer job losses, fewer businesses collapsing.
Of course what we would then find is that the growing consumer financial protection trust fund would be required far less than it is with ATOL and the CAA now. It would enable the travel industry to invest in offsetting carbon, invest in less fortunate parts of the world, fund areas inflicted by natural disaster etc. Who would ever have thought, the travel industry could be responsible!
Some people in our industry have questioned ABTA, what does it do, what does it provide in means of financial protection. many think that ABTA days are numbered. Is that really the case? Yes! But that does not mean that we do not require an industry body. We just require a body to have different values and goals. A travel ombudsman if you like. Financial services are controlled, telecommunication is controlled, why not travel?
Controlling discounting, controlling direct and directional selling will benefit all and enable us all to work together, not as we pretend at our famous industry get togethers. We play well together, lets work together.
I wonder how many of the industry forces will support my comments? Probably very little, which is why the OFT and the Government need to act and sanction changes and impose discounting and advertisement restrictions.
The sooner this is done, the sooner we can benefit the economy recovery and enjoy the benefits of a happy, fair and profitable industry.
I would be happy for the Travel Weekly to share my idea for discounting and advertising control with the emergence of a travel ombudsman. perhaps an online vote could be performed?
Best regards,
Paul.
It's a real shame that Co-operative Travel have decided to merge with Thomas Cook. The Co-operative brand has been going for years and people have learnt to respect and trust the brand. Not suggesting that Thomas Cook aren't reputable but the Co-operative brand has always been seen as independent so people feel they are getting impartial holiday advise. I think they will probably loose this reputation now.
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