p10 news apr10 7/4/09 19:48 Page 10
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ttglive.com
Compensation
Interview Maria Whiteman, The Holiday Team
claims tipped to
rise in recession
Low-price is ploy
HOLIDAY companies are being warned to expect
burgeoning numbers of compensation claims
this summer as consumers fight for every penny
during the recession.
for Holiday Team
Stephen Mason, managing partner of Travlaw,
which specialises in travel litigation, said
customers made more claims during an Last week’s Advantage deal could be one of many this year
economic downturn.
by The Holiday Team, as the consolidator strives to become a
He said his firm had handled far more
major player. Lee Hayhurst talks to director Maria Whiteman
complaints for holidays taken in summer 2008
than in previous years, and he expected the
figure to increase after this summer. OFTEN in business the really an issue they can
“In good times people put things down difference between success mark up by 5%.
to experience,” he said. “But when money is and failure can be a simple “Our system allows
tight you will find increasing numbers seeking matter of timing. agents to control their
compensation.” Southall Travel-owned own destiny.”
Mason advised companies in all sectors of the flights and hotels consolida- There are some who think
industry to examine their supplier contracts, to tor The Holiday Team be- with agents doing their own
prepare for an onslaught of claims. lieves the time is right for its deals and airlines becoming
“It’s astonishing how many companies, even big push into the mainstream more sophisticated distribu-
large well-run businesses, do not have their holiday sector. tors, the consolidator model
supplier contracts in order,” he said. Rival Gold Medal’s decision is dead.
“Sometimes there is no written agreement at before Christmas to sell a Whiteman agrees
all with the supplier, while often there is only a majority stake to Thomas dwindling margins on flights
room-rate agreement. In too many cases there is Cook might have come as an has forced consolidators to
no contract or no clause outlining what happens unexpected opportunity. transform into tour opera-
in the event of a claim being made.” But recent upheaval at the tors, but says: “It’s still a
other big consolidator, Travel 2, caused by re- massive market but there are more players in it
structuring at parent company Stella Travel because the divide between retail and tour op-
Thomson Sport’s
Services UK, came as less of a surprise. erator has gone.
In January, Maria Whiteman (pictured), for- “Airlines don’t want lots of distribution
World Cup win
mer Travel 2 managing director, joined The Hol- deals and although some large retailers
iday Team as a consultant director, sparking the have their own deal, a lot don’t want to take
start of an “aggressive” growth period. on that responsibility.
THOMSON Sport, part of Tui Travel’s activity The Holiday Team was set up two years ago, “Margins are lower on flights, which is why a
division, has been named an official tour oper- targeting travel agenices serving the UK’s Asian lot of consolidators are focused on selling the
ator for the 2010 Fifa World Cup in South Africa. community. front end of the cabin, packages and hotels.
The operator will provide official And it has ambitious objectives. Whiteman “But we are quite happy to get flight-only
travel packages, including says it has set a turnover target of £150 million in economy because we are getting volume
match tickets, for the this year, up from £120 million. and that contributes to our override deals
event in June 2010 To achieve this goal, the Holiday Team is with the airlines.”
in Johannesburg. unashamedly pursuing a price-led strategy to The Holiday Team has just launched a white-
The deal follows take market share, while also promoting its label product and a hotel-only search, with an
Thomson Sport’s technology and service. XML feed due to follow this month.
naming as official Whiteman explains: “We are marking up It has developed the ability for agents to load
travel sponsor of relatively low because we want to penetrate their own unique “Cat 35” net fare air deals.
the Uefa Under-21 the market. Along with its fully automated documenta-
Championship 2009 “If you compare us to our key competitors, tion system and what it claims are high service
in Sweden and the their packages are commissionable. Basically, levels offered by the 700 staff at its call centre
Uefa Women’s Euro we add a small mark-up and agents have the in Delhi, The Holiday Team firmly believes its
2009 in Finland. scope to mark up to say 20%, but if price is reputation with the trade is growing.
10 10.04.2009
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