P12-13 Peter Long apr10 7/4/09 21:21 Page 13
ttglive.com
interview news
“There is a great opportunity to
really build brand loyalty and
capitalise. Just reining back and
cutting costs is being business
efficient but it’s not a strategy”
There are huge amounts of negotiations going on,
particularly in Spain. Hoteliers are realising that capacity
is being reduced by the levels we’re talking about, so if we
get the right price, our customers will go to Spain, and if
we don’t, they’ll go to Turkey or Egypt.
“Hotels want to work with us. Spain is suffering
because its domestic market is weak – they are depend-
ent on us. It’s also our most important destination.”
Value of agents
Long confirms that 35% of his customers book online, and
says this proportion will grow but believes it is unlikely to
be more than 50% for the foreseeable future.
“At least half of our customers for many years will want
to come and speak to someone face to face for advice and
reassurance,” he says.
“So our long-term retail partners will remain our retail
partners. Holidays are a very emotional purchase, unlike
a flight or car just bought on convenience or price.”
Sustainable future
Long believes Tui is well-positioned thanks to consolida-
tion. “We increased our synergies to £200 million. We
believe we have a unique and broad portfolio of travel
brands, and a third of our profits come from our
specialist portfolio,” he says.
“But we’ve got a much bigger mainstream presence
these days, and the fact that we’re keeping that third
versus two-thirds ratio is encouraging. THE ALTERNATIVE
“We also believe people will migrate to the big brands
in this environment. We’re not just focusing on the short
The alternative
term but ensuring we build ourselves a long-term sustain-
able future.
to increasingly
“So we’re not going to go daft for 2010, but work on
plans which take us through to 2013. That includes more
expensive bonds,
unique holiday experiences. So we’re developing more
which have better
Holiday Villages and Sensatory resorts.”
He adds: “We’ve also got a number of businesses that
merchant acquirer
have not been achieving the returns they should be so
rates and a new
we’re making some big decisions, like our alliance with
Air Berlin in Germany, which takes us out of the low-cost solution for cashfl ow
market there.
“We’re also looking at new source markets. Russia
headaches
is very much on our radar. We’ve got a joint-venture
partner keen to get into tourism and we’re looking
PROFESSIONAL HELP TO SET UP AND RUN
to acquire tour operating businesses there.”
Given Long’s attitude to emails, it’s a fair bet he’ll be
YOUR INDEPENDENT TRAVEL BUSINESS
clinching those deals with an old-fashioned shake of the Contact Matt Skilton on 01483 545 783
hand, rather than a Tweet.
or email him at matt.skilton@traveltrust.co.uk
10.04.2009 13
Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64