p18 ITT 16/6/09 17:41 Page 18
news conference report
ttglive.com
ITT 2009 • June 8-10 • Dubai
BRANDING.
COMMISSION.
Co-op lauds repositioning
THE CREATION of a consistent Co-operative brand
Virgin Holidays drops
across the group has helped it break into the top
50 UK companies, ITT delegates were told.
Terry Hudghton (below), the group’s head of
brand, said the group had a combined turnover
lowest-selling agents
of £14 billion and the travel division returned
record profits last year.
Robin Searle.
He admitted that before the rebranding VIRGIN Holidays has cut back the number of Baird confirmed that Virgin pulled out of its
the Co-op group had had a confusing and agents it works with and reduced commission shop co-branding project with Harvey World
mixed brand position, with many consumers levels for low-producing agencies to below 10%. Travel in early 2008, and has no plans to
associating it with cheap grocery stores. The operator said the move had allowed it to re-establish a high street presence for its brand
But he said it had worked to emphasise its focus on top-producing companies and pay them beyond a small network of retail concessions in
brand values based around ethical business to better commission rates than its competitors. London and the south-east.
increase the emotional bonding customers have. The Co-operative Travel, Advantage and The operator currently has 13 concessions in
Research suggested that customers who had Global Travel Group are all benefiting from Debenhams and Tesco stores, and plans to open
an “emotional bond” with brands were six times enhanced commission rates. a further 10 in August and September this year.
more valuable than those who had just a But “a large chunk” of agencies which belong Baird insisted the concessions do not compete
“functional bond”. to consortia that cannot commit to directional with partner agents as they are in high-cost
Hudghton said this had been borne out in the selling are now on under 10%, according to sales areas with low-agency presence.
recession, during which the top 100 global brands and operations director Stewart Baird. He said the Virgin strategy was now focused
had actually seen their businesses grow by 2%. “We have narrowed down the agents we on building productive commercial relationships
work with and have focused our attention and with third-party agents rather than branding its
rewarded those who really support us,” he said. own shops.
“We are working strongly with independent “When [Global chief executive] Andrew
agents, particularly The Co-operative Travel, Botterill took over at Stella, it was just too late to
Advantage and Global, and while we do not have turn the co-branding around,” he said.
a relationship with Tui to speak of, we have a “Now we are committed to working out who
buoyant relationship with Thomas Cook which is supporting us, and then rewarding them
has always presented itself as a travel agent.” accordingly.”
PROTECTION.
SECURITY.
Beware cyber criminals
Trust success boosts TTA membership
TRAVEL firms must take immediate action to THE TRAVEL Trust Association is The TTA is particularly attractive
protect data from criminals who are working growing by 12 members a month to start-ups, Lewis said, as 80% of
“24 hours a day” to crack security systems. as firms look to offer customers members are new companies.
Investigative journalist Misha Glenny said financial protection, according to But the Tatol enables firms to
cyber crime, along with counterfeit goods, would operations director Gary Lewis. protect customers without paying
be the main growth areas for organised criminal The TTA has had its tailored “Tatol” the £1 per customer Atol Protection
organisations. arrangement with the CAA renewed Contribution and Toms Vat.
“Keep your anti-virus systems up to date and having come through “stress tests” It also allows new companies to
be careful what you do with your data,” he said. following the collapse of XL Leisure avoid the CAA’s demands for a 15%
“There are people working 24 hours a day to Group. bond, and the 5% net-free asset requirement.
access that data.” This offers 100% customer financial protec- New Abta chairman John McEwan (pictured)
Glenny said international organised crime – tion for all products sold to customers and has held talks with the TTA about its protection
which he dubs McMafia – accounted for means members can operate as agents even scheme.
15-20% of global GDP. when putting together their own packages. Abta has traditionally been antagonistic to
Glenny highlighted a number of Lewis said travel firms looking to offer trust accounts, saying they do not offer a
popular tourist destinations which protection were flocking to the TTA, which is cast-iron guarantee that monies are safe.
play key roles in the production, seeing up to 17 new applications a month. Lewis said: “Abta is right unless you have an
distribution and consumption of He conceded the model, which does not give organisation like the TTA. We go further than the
illegal activity, ranging from drugs members access to customers’ money to use as Package Travel Regulations require and offer
to prostitution. cashflow, did not work for everyone. 100% protection.”
18 19.06.2009
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