NEWS — HOT STORIES 2


Lo Bue-Said: ‘We work with Tui where they have regional gaps’


Tui says indies ‘important’ despite rise in direct sales


Ian Taylor


Tui Travel reported taking more than half its UK summer 2014 bookings online and said direct sales had risen, but UK managing director Dave Burling insisted: “That doesn’t mean independent agents are not important.” Burling said: “Obviously, we


have policies that drive direct distribution, but I don’t see a time when independent agents won’t be important to us.” Tui said its exclusive product


accounted for 84% of summer bookings, with Burling saying it offers benefits to independent agents who sell Tui: “These hotels often sell early. The average selling prices are attractive. They generate repeat business.” He added: “Our forward sales


are up year on year through quite a few independent agents. There are still opportunities for independents.” Burling said: “We’re not going to please everyone, but we’re still very keen on selling through independent agents.”


Julia Lo Bue-Said, managing director of Advantage Travel


Partnership, said: “Tui still has some reliance on third-party sales – on strong independents and regional miniples. We work with Tui where they have regional gaps. We’re not naive. We’re clear on their strategy. We work with Tui where there is an opportunity to help our members.” Tui reported a


47% increase in group underlying profits to £112 million for the three months to June, despite a 2% fall in revenue. UK operating profit rose 17%, with bookings down 1% year on year but average selling prices up 2%. Referring to Aphrodite Hills in


Cyprus, which will operate as a Thomson Sensatori next summer, Burling said: “Our hotel partner Atlantica Hotels is going to invest a lot in Aphrodite Hills. It will be an even better product.” ❯ Letters, page 27 ❯ Tui results, page 55


3


‘Ambitious people’: Don Bircham (left) and John Hays


Hays Travel buys 40% stake in 14-shop chain Just Go


Lucy Huxley and Hollie-Rae Merrick


Hays Travel has taken a 40% stake in northwest-based 14-branch miniple Just Go. Owner Don Bircham will retain a 60% shareholding, but all 14 shops in north Wales, Merseyside and Cheshire will be rebranded ‘Hays Travel with Just Go’ from October. The deal, for an undisclosed sum, was privately funded by Hays. Just Go was a Hays Travel Independence Group member before becoming a First Choice franchise in 2006 as part of an agreement that is about to expire. Bircham said he would be “daft not to” take this opportunity to review the business but believes Hays and Just Go will see mutual benefits. Hays was one of six companies to take an interest in Just Go, but Bircham said Hays was always a frontrunner. “I liked the infrastructure offered by Hays and there


was a good fit between the businesses,” he said. “First we’ll look to consolidate and bed-in and then


we’ll look at opportunities to expand. It’s no secret that both John [Hays, managing director of Hays Travel] and I


are very ambitious people, keen to grow the business.” Just Go has about 100 staff and turns over more than £36 million. Hays said three existing Hays stores in the region could become part of the partnership, but nothing has been agreed. He added: “The focus is that the transition of the businesses goes


well. We have been trading very strongly and I have always been an advocate of high street travel agents when a lot of people thought they were doomed. My actions in the past year with [the acquisition of] Bath Travel and now Just Go is an indication of my confidence.” Hays Travel also completed a deal for the staff, bookings and customer base of Jesmond Travel in Newcastle last week.


14 August 2014 — travelweekly.co.uk • 5


“We’re still very keen on


selling through independent agents”


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