Thomson in drive to broaden sales
Ending the reliance on sales of package holiday could be critical to the survival of some Thomson high street agents, retail and commercial director Derek Jones has warned.
He told TravelMole the network needs to look for additional revenue streams after admitting there is no longer growth in the traditional package sector.
“You can drive sales harder and harder but the fact is we are running at full tilt on package holidays,” he said. “Sales are not going backwards but we increasingly need to drive forward into other areas.”
He said the diversification – which may involve the sale of guide books, sun cream and even leisure wear – could make the difference between the “opening or closing” of a shop. Jones stressed however it was not implementing a shop closure programme.
His comments follow a decision by the operator so begin selling overseas properties – the first in what is certain to be a series of measures to diversify sales.
Jones said a list of “20 or 30” revenue streams has been drawn up which will directly contribute to the profit and loss of individual shops.
The strategy could see some shops become fully blown retailers selling a range of leisure and holiday products.
“We have dabbled in it before but we need a proper system for it to work effectively,” said Jones.
He added more emphasis will be placed on driving sales of non-package products such as accommodation only, flight only and airport hotels.
To underline the need to broaden sales, agents were this week given access to ten low cost airline websites for which they will charge customers a £20 booking fee.
Turning to the sales of overseas properties, Jones said designated property desks could be introduced into some shops with staff specifically trained to handle enquiries and sales.
Agents will initially act as a referral service for overseas property company Parador Properties.
Report by Steve Jones
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