in; that’s where we add value for agents.” The operator is already seeing
sales grow for twin-centre trips such as California with island-hopping in Hawaii and New York with Cape Cod. Harvey said: “People have more confidence and they are more travel savvy.” There is no doubt too the
market to the US has been helped by improvements at border control to make entering the US easier and quicker for UK visitors, and the fact other destinations have seen a drop in visitors, sparking a rise in prices to the western Mediterranean. “Our US and long-haul products
are much more competitive because people are not going to Turkey or Egypt,” said Rollo. “It makes long-haul really
attractive and we are picking up business we might not have had. “There are also some really good
rates in New York in high-end hotels: the price for a five-star hotel is the same as a three-star was a couple of years ago.”
Challenges
Virgin Holidays’ decision to ditch the trade has undoubtedly given Travelmood a chance to make its mark but there are challenges in this highly competitive sector. Rollo said: “[Rivals] Gold
Medal and Travel 2 are a massive challenge for us. There are a lot of agents loyal to these companies.” While Rollo said she could not
promise high-spending campaigns, Travelmood “can and is listening to agents”, reacting quickly to their needs and giving personal service. “We are not going to be splashing the cash,” she said. “But because we are new, we
“We cannot necessarily be the cheapest but we want agents to give us a try”
can be more agile. We can listen to what agents want; we have not got an agenda. “We cannot necessarily be the cheapest or offer the highest-paying incentives, but we want agents to give us a try.” Other challenges in the market include terrorist attacks, although Harvey played down the impact following the recent shooting at a Florida nightclub. “It’s such a vast country and customers are aware most of these incidents are isolated instances,” she said. Travelmood has also faced
its own hurdle to persuade independent agents to trust a business that is part of the Tui Group. Many third-party agents cut ties with Tui following the decision by its Thomson brand to slash commission to 7% in 2005. Rollo admitted: “We have
examples of one of our staff almost being thrown out [of a travel agency] but they persisted and suggested they give us a go, which they did because we offered something others didn’t. “If we get an agent to book we
start to see repeat purchases. “There are plenty of agents to be persuaded and our team is very much driven by this challenge.”
Trade
Eight months after launch, Rollo says Travelmood has been well-received by the trade but
there is more to be done to build awareness and confidence. “There is still a lot more education to do,” she said. “It’s also giving agents the confidence [to tailor-make].” A new commission and rewards structure is in place to make booking Travelmood “more attractive in earning potential”. There is also an agent website,
Travelmood.com, boasting an “advanced” search facility, and a team of eight sales executives on the road, who also promote sister Tui brands Hayes & Jarvis, Citalia and Austravel. Two further sales executives
are being recruited for the south, where Rollo feels more needs to be done to pull in sales. “You can see the uptake in bookings is linked to where we have invested. If you look at our bookings to date, we have seen great early sales from Scotland, the northeast and the Midlands. “We have not really done
enough [in the south]. We have had good feedback from Advantage stores that we have got a lot more potential. It’s early days.”
US focus
Travelmood is using July as its month to push its US and Canada programme with the trade. Roadshows start this week, with events in Glasgow, Newcastle, Manchester and London for selected
TRAVELMOOD at a glance
n Launched: October 2015
n Head office: Crawley, West Sussex
n Sales team: Eight, with 140 years’ industry experience. Two more being recruited.
n Most popular destinations: Thailand and Maldives
n Distribution: All of the main consortia and any Abta- bonded independent agent that wishes to work with it
third-party agents, while evening quiz nights are being held, and visits are planned to 30 agents a day to launch the new USA and Canada brochure.
Future
Travelmood is keen to stress its long-term commitment to the trade and has “aggressive targets”. “We might have had the luxury
this year to not have massive targets,” said Rollo. “But over the coming five years
we are putting more onus and hope on our performance. We need to see the numbers,” said Rollo. Agents can expect to see plenty
more from the Travelmood stable and receive many more visits from its sales team. “We are in this for the long run,”
said Rollo. “We need to build trust.” › News You Can Use, page 24
7 July 2016
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