NEWS YOU NEED TO KNOW 1


Flashback: Travel Weekly, March 2013


AT A GLANCE Cook pricing strategy


 Thomas Cook scrapped price parity on December 21, following a trial. It said it needed to “compete on a level playing-field with rivals”.


 Major consortia were in discussions this week with Cook, following the decision.


 Neither Jet2holidays nor Tui offer price parity.


Cook staff will no longer be able to


guarantee shop prices match those online


Cook angers agents with move to ditch price parity


Amie Keeley and Juliet Dennis


Independent agents were in talks with Thomas Cook this week following the group’s decision to scrap price parity going in to the peak sales period.


The operator removed price


parity for independent agents as well as for its own stores on December 21 following a trial in October in which it advertised some hotels cheaper online. Cook said it had listened to


feedback before making the decision but had to compete on a ee ayinfied” wit ria. Neither Jet2holidays nor Tui


offer agents price parity. Some independent agents,


which make up 15% of Cook sales,


reacted angrily to the move. This week, consortia including


The Travel Network Group were in talks with Cook, while other independents expected the policy to be tweaed”. Simon Morgan, owner of Welsh miniple Tailor Made Travel, said: “Cook had to do it but I believe we’ll see a commercial turnaround when it sees the cost of it. “We turn over £6 million to


£7 million of Cook holidays a year and I’ve already seen a dramatic change in sales. Hopefully, it will tweak its policy and bring in minimum commission levels on riceatc dea.” Spear Travels managing director


Peter Cookson said Cook had “shot itef in te foot” and redicted it would return to court the trade. “Doubtless, Cook will come


4travelweekly.co.uk3 January 2019


“Cook had to do it, but I believe we will see a turnaround when it sees the cost”


bac wit te bein bow ater” he said. “It is still in our top 10, firewie bt ti ay trait into the hands of Jet2holidays, which must have thought this was an eary rita reent.” Alistair Rowland, group general manager for Midcounties Co- operative Travel, agreed the move wa a ift” to oo coetitor. “If it doesn’t get the volume grab


onine it oin to find it diffict to get immediate traction from the trade” e aid.  can ee wy oo has done it, but it’s a risky strategy if there is no plan B.


 Many agents have reacted angrily to the move, saying it will “play into the hands” of Cook’s competitors. Independent agents account for 15% of Cook sales.


 Some expect the policy to be “tweaked” to appease the trade. They claim it could backfire and lead to closures of the giant’s own shops.


 Cook brought in price parity in 2013.


“It’s a huge disappointment. All the good work Cook has done with te trade i at ri.” Baileys Travel managing director


Chris Bailey said his shops would continue to sell Cook, but he be- ieed te oe cod bacfire and lead to closures of its own stores. He said: “It makes no sense to


introduce a pricing regime that works against independent agents and it own o.” Phil Gardner, Cook’s sales and e-commerce director, said: “We need to compete on a level ayinfied wit oter oerator and online agents. “As a result, we will be


strengthening our web pricing to make sure we offer our online ctoer te bet rice oibe.” Cook introduced price parity for third-party agents in 2013.


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