Dynamic packaging is not consumer driven, says TUI

Global Travel Group Conference Special: TUI UK has been accused of scaremongering agents after warning that the growth of dynamic packaging was a myth and could be short-lived. Commercial director Derek Jones suggested the practice of agents designing and selling self-packaged holidays was retail, and not customer driven. He told delegates at the Global Travel Group conference in Cyprus that the trend “could fail” before robustly defending the traditional package product. Jones, who revealed Lunn Poly does not have the technology to piece together separate elements of a package, said: “I am not sure how much of this is being driven by retail push rather than customer pull. “Dynamic packaging is a modern trendy term for tailor made. I would throw out a big caution to travel agents. Make sure you are doing this because it is what the customer wants. Be careful you are not trying to make customers fit a model that is better for you because that will fail.” He promised Lunn Poly would develop the necessary technology “if we see the demand.” Former MyTravel executive Steve Endacott, who last week launched Holiday Brokers, a web-based accommodation only product targeted at agents, said operators were trying to the frighten the retail trade. “Big operators are guilty of ignoring what the customer wants because flexibility does not fit their model,” he said. “We should not allow tour operators to scaremonger.” Earlier, Endacott predicted the market could grow to five million within three years with the desire for more flexible holiday durations and excess bed and airline seat capacity driving demand. He said customers are suffering from “beach boredom” with the number of people wanting fixed seven or 14 nights holidays falling dramatically in recent years. Jones dismissed the slur, adding: “There appears to be this premise that six nights is sexy and seven is not. I don’t recognise this in customer’s behaviour.” Global Travel Group operations director Andrew Botterill said dynamic packaging would end the reliance on traditional tour operator products. “Independents are being disadvantaged at certain times of the year and this gives them the vehicle to compete. They have to have the ability to make their own offering,” he said. The launch of Global Rooms – an online accommodation-only provider with 22,000 properties – would further help agents to build packages, said Botterill. Meanwhile, Endacott warned agents to seek clarification on whether they are bonded to package their own holidays for clients. Under confusing Civil Aviation Authority legislation, agents who put together a package and advertise it must hold an Air Travel Organisers Licence while those responding directly to a customer request do not. “It is a grey area. There must be clarity,” said Endacott. “If you get it wrong you could destroy brand loyalty.” Global is still in discussions with the CAA over a group bond that would enable members to pre-package and advertise the holiday. It hopes to conclude talks within the next two months. Report by Steve Jones