Online holiday sales nudge ahead of high street bookings
TUI Travel admitted today that the company would close further high street shops as the internet becomes an increasingly important sales outlet for the business.
However, TUI is not planning widespread closures like rival Thomas Cook, even though agents now account for just 38% of its business while 40% comes via its website, said distribution director Nick Longman.
"There is no doubt we will see online growing, but travel agents will remain a very important sales outlet for us," added Longman. "We will continue to close shops where necessary but we are not looking at widespread closures and we believe High Street shops will continue to play a vital role in the sales process."
He said there was no danger the company would follow Thomas Cook in rapid closing high street shops as it is not suffering the same financial difficulties. TUI today announced an 18% rise in operating profit for 2011.
Longman pointed out the two companies operated very different business models. "Thomas Cook is primarily a travel retailer whereas we are holiday providers and we are focusing more and more on providing differentiated product that offer holiday experiences which people can't buy anywhere else," he said.
Differentiated holidays, such as Thomson Couples (aimed at 35-55 years olds), account for two-thirds of all its sales but the company is aiming to grow this to 80%, said Longman.
He said the company was excited by its long-term prospects beyond 2013 when it will become the first UK charter company to operate the Boeing 787, nicknamed the Dreamliner.
"With its increased range it will give us some exciting options, such as Vietnam. It can even fly to Hawaii, and the passenger onboard experience will be hugely different. With larger windows and mood lighting, passengers will suffer less jetlag. We are very excited about this."
By Linsey McNeill
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
TAP Air Portugal to operate 29 flights due to strike on December 11
Qatar Airways offers flexible payment options for European travellers
Airlines suspend Madagascar services following unrest and army revolt
Digital Travel Reporter of the Mirror totally seduced by HotelPlanner AI Travel Agent
Strike action set to cause travel chaos at Brussels airports