29 January 2009

Luxury operator emphasises importance of independence

Consolidation in the luxury tour operating sector is enabling ITC Classics to emphasise its independence to both agents and consumers.

The Chester-based operator, which marks its 35^th anniversary this year, believes acquisitions such as Thomas Cook’s purchase of Elegant Resorts is creating an opportunity.

Chief operating officer Jennifer Atkinson said: "Being an independent operator we can be more flexible.

"Because of the consolidation in the market we are almost the last man standing."

She believes there is demand for alternatives to large homogenous corporations in travel just as there is in the high street.

"On the face of it the large companies have more muscle but everyone I talk to says it is the independence that is invaluable."

The operator, which sells more than half of its holidays through the trade, acknowledges that the unfavourable sterling exchange rate against the euro and dollar is affecting business.

But Ms Atkinson claimed sales in January were like for like with the same time last year, a significant improvement on what she admitted was a "disastrous" December.

She said ground was being made up this month despite the loss of bookings from Thomas Cook agencies following the Elegant Resorts takeover and American Express taking one of its top card holiday accounts in house rather than using ITC.

Ms Atkinson attributed those two factors to an overall 10% decline in business but said the company was outperforming rivals.

She was speaking the day after Kuoni revealed that forward long haul bookings were 20% down (see previous TravelMole story).

ITC agency sales manager Jonathan Bellamy disclosed that more than 15 bookings worth more than £20,000 had been taken this month alone from agents as part of an incentive being extended until February which rewards retailers with shopping vouchers.

At the same time there had been a drop in bookings worth around 3,000/£4,000.

Ms Atkinson said ITC was planning a new programme to Turkey to take advantage of its status outside the eurozone and was encouraging sales of holidays and destinations such as South Africa, New Zealand and top end all inclusive hotels in response to offer-led demand.

The operator is planning a range of incentives for agents throughout 2009 to mark its anniversary, including an open house at its headquarters, private dinners and three long haul educational trips in addition to a ‘VIP’ trip next month to spend three nights on board Silversea Cruises’ Silver Shadow in the Caribbean and a visit to the Sabina Park cricket ground in Jamaica.

For consumers, ITC has introduced a direct debit scheme to allow holidays to be paid for in monthly instalments with a low deposit.

by Phil Davies

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Your Comments (2)

Claim independance!

The homogenisation of modern day life is tiresome to most and more is not always better. People know they get better service from individuals who know the product and it will win out in the long run. Having complete control of your business also eliminates dependence on generalised and often detrimental decisions made elsewhere. Service is the new black!

By Peter Shearn, Thursday, January 29, 2009
Quality not Quantity

I agree with Jennifer Atkinson (ITC). The amount of consolidation in the market can only make it better for specialist operators. Oriental panorama are experiencing a "significant " increase in "quality" bookings in January as the "big boy" call centres can't cope with the increasing demand from clients of knowledge and expertise. Like ITC smaller operators are able to react very quickly to world events and currency fluctuations. Its a shame that "quality" operators like Elegant Resorts have lost their identity and get swallowed up into the mulitples approach to retailing travel. Keep up the good work ITC.

By barry coleman, Thursday, January 29, 2009