TUI ends deal with JustGo
TUI is to ditch franchise partner JustGo in September, saying the partnership doesn’t fit its long term distribution strategy.
JustGo, which has 14 shops and 100 staff, said it is now looking to form new partnerships, speak to consortia or go it alone.
It was founded by former United Norwest Co-op manager Mark Johnson and Don Bircham in 2000, who started with one shop in Mold, Flintshire, Wales.
Bircham said staff are optimistic as the company looks at the options.
He said: "Before we had restrictions on where we could open, we couldn’t have a website and we had to follow the corporate line which of course also had significant benefits.
"It would be a big transition to go it alone and we would have to re-invent parts as TUI provided the marketing support, technology and back office.
"But we operated as an independent before for five years and we’ve already got good terms in place with TUI.
"We have given ourselves three to four months to look at options and speak to people before the end of September when the contract with TUI finishes."
In a statement today, TUI claimed the decision to split was mutual.
Director of retail TUI UK & Ireland Kathryn Ward said: "We have worked closely and successfully with JustGo for eight years, with both parties benefiting from the partnership.
"However, looking to the future, a franchise operation such as this does not meet our long term distribution strategy of controlling more of our distribution through our own routes to market.
"We will continue to work closely with JustGo through their period of transition and, going forward, we hope to continue our strong commercial agreements, as well as maintain our already solid relationship.
"We would like to thank JustGo for their support as a very valuable franchise partner and wish them luck as they move forward with their business."
JustGo became the first ever First Choice franchisee in 2006 and renewed the agreement in 2010 for five years.
At that time, the group had 12 shops and planned to open eight more on the back of the favourable commercial agreement with TUI.
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
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