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Agents urged to hold firm as ‘irresponsible’ discounting returns to the cruise sector
Hollie-Rae Merrick
Agents have been told to “hold their nerve” over fears that discounting is returning to the cruise sector. Thomas Cook has started matching P&O Cruises and Cunard’s 5% discount for past passengers, while
Cruise.co.uk has followed suit, tweeting this week: “We’re giving something extra to P&O cruisers! We’re giving 5% discount ON TOP of P&O’s 5%!” Phil Nuttall, managing director of The Cruise Village and head of Clia UK & Ireland’s agent advisory board, branded discounting “irresponsible” and claimed he had turned down business after customers had asked for discounts. “Discounting is an issue again, but I
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wonder whether those who are discounting would do so if the market wasn’t as flat as it is now,” he said. “It seems that some instantly feel the need to discount to stimulate the market in the same way cruise lines offer tactical incentives. “It has had a localised impact on my business. When they’re pushing discounts out in shop windows, online and on social media, some customers have asked us to offer a similar discount – but I won’t. “Others should hold their nerve, although the question will be how long others can hold out for.” Nuttall said there was overcapacity in the market, with lots “of new ships coming into the water”, but not enough demand. UK cruise passenger numbers fell by 80,000 last year to 1.64 million. Simone Clark, managing director at Iglu Cruise, said she hadn’t felt the need to cut prices. She added: “Thomas Cook has historically discounted, so has just come back to doing it.”
“Would those who are discounting do so if the market wasn’t as flat?”
Miles Morgan, of Miles Morgan Travel, said: “Price is a short-term strategy and won’t last.” Thomas Cook said it was inappropriate to discuss commercial agreements. Carnival UK and
Cruise.co.uk declined to comment.
Billionaire recruits Locke for travel portfolio Lucy Huxley
The billionaire grandson of the founder of Tesco plans to create a travel portfolio of hotels, chateaux and chalets worldwide, and to sell them through the trade. John Porter, 62, is described as “a businessman and philanthropist best known as the grandson of Sir Jack Cohen, founder of Tesco, and son of Dame Shirley Porter”, according to an online listing. He is creating the John
Porter Travel Portfolio, and has appointed Tim Locke, currently head of sales and marketing at Mark Warner, to be managing director. Locke will leave the snow and beach resort
operator on May 23, immediately after helping to host the Advantage Travel Partnership conference at
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travelweekly.co.uk — 16 April 2015
a Mark Warner property in Turkey. He has worked for the company since August 2011. Locke told Travel Weekly: “John wants me to build a travel group of real significance over time, with the UK travel trade firmly in our sights as a distribution channel. We will be launching several consumer brands over the next couple of months that will be sold both direct and by travel agents.” Porter used to own Go Travel, one of the biggest tour operators in New Zealand, and still owns a bed bank featuring properties in Fiji. He also used to be a majority shareholder in Cheapflights. Locke said: “My job at Mark Warner was one of the best in the travel industry,
if not the whole world. But when you get a great opportunity to move on, you have to go for it.” He was previously head of marketing and IT at Dertour.
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“We will be launching
several brands and selling via agents”
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