NEWS


“We recognise we need new pricing and commission structures in place”


“We will not be targeting


[agents’] customers direct – that would be completely wrong”


‘Give us a chance’ Neil Swanson


Tui marketing chief outlines operator’s plans to re-engage with third-party agents. By Juliet Dennis He urged agents to engage with


Tui’s marketing chief has called on independent travel agents to work with the operator as he outlined plans to overhaul its commercial terms, service standards and relationship with the trade. Neil Swanson’s plea follows


a wholesale change in Tui’s overall approach to sales through third-party agents since it cut base commission to 7% for independents almost 20 years ago. It comes as Tui prepares


STORY TOP


for its biggest-ever programme for summer 2024, with 1.1 million extra seats and additional flying from 13 UK airports, bringing the total to more than 10 million seats. Speaking exclusively to Travel


Weekly editor Lucy Huxley, Tui chief marketing officer Swanson pledged the operator was “in it for the long haul” and aimed to build “long-term relationships” with independent agents to sell product from across its entire portfolio.


travelweekly.co.uk


the operator, insisting Tui had taken on board feedback to review its pricing strategy and commission payments, and to improve trade contact centre services. Swanson dismissed the post- Covid boom in agent popularity as the catalyst for the shift. He insisted the move was part of a longer-term, “bigger” overall strategy to grow distribution through part of the market Tui was


currently “missing out” on and to sit alongside other large trade players. “We’re missing out on a portion


of the market – largely independent agents,” he said. “We want to put that right. This is


about long-term relationships. “All I am asking is for people to


give us a chance. The proof will be in the pudding, but I can promise you we are here to stay.” Tui’s new trade approach is


three-pronged: to expand its trade


team from eight to 14 to cover all of the UK to train and support agents; to review trade commercials, including commission structure; and to improve customer service in trade contact centres to the same level given to direct customers. Swanson said Tui had already


begun working more closely with some consortia agents, with trials running since the start of the year. He would not reveal details of


commission payments but said: “We recognise we need new pricing and commission structures in place. It’s got to work for both parties on a commercial basis. “It’s something we’ve been


reviewing, and we’ve done some trials. We’re now ready to start communicating that to agents.” Agents would need to decide if


the new terms “work for them”, he said, conceding some may “never come on board”, but he hoped agents would “give us a go”. New commercial agreements


are due to be in place by the end of October. In response to agents’ concerns


about price parity and disparity in deposit levels, Swanson said low or zero deposits available to Tui’s agents or online would need to be available via third parties too. “That should be addressed, and it will be,” he said. Regarding support and wait times


for agents through contact centres, he said: “We have a programme in place to improve that service.” Swanson also pledged that


Tui would not target agents’ own customers to sell to them direct.


Watch the webcast and


read more on Tui’s plans to: OReview commercials OSupport and train agents OCompete with rivals ORaise its profile in the trade Visit travelweekly.co.uk


7 SEPTEMBER 2023 5


“This is about


long-term [trade] relationships. I can promise you we are here to stay”


PICTURES: Andrew Fosker/PinPep; Shutterstock/Markus Mainka, Klemen K Misic


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  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72