4Hoteliers
SEARCH
SHARE THIS PAGE
NEWSLETTERS
CONTACT US
SUBMIT CONTENT
ADVERTISING
TUI Travel blames small agencies + Dynamic packaging for its woes.
Wednesday, 1st September 2010
Source : Timothy O Neil-Dunne ~ T2Impact.com
The bigger travel companies in the UK are trying to play the blame game according to a recent report in TTG/UK.

After the recent collapses in the UK - there is plenty of bad blood floating around in the market.

Tui's chief financial officer Paul Bowtell said: "The later booking curve plays into the hands of smaller operators who can pick up relatively cheap distressed airline stock which can they can package up.

"These operators are able to get that stock to market very quickly – they feed on distressed stock and that has an impact on margins at the lower end of the market." He is not alone other players like Sunvil's Noel Josephides said that the main problem was dynamic packaging agencies who picked up distressed stock at the last minute.

"This is the bane of our lives," he said. "Whenever you have distressed stock this will happen as the dynamic packagers will move in and undercut us.

Clearly ignoring the fundementals that I laid out yesterday in my post on the state of the UK Market, he said: " I'm looking forward to when all the dynamic packagers have to have an ATOL and we can stabilise the market."

Given the need for a new scheme in the market following the Loss by the UK CAA of its court battle on the subject, this is not going to happen any time soon. But for the biggest operator to put the blame on the small guys is seems to indicate that TUI Travel is having a harder time of making its scale/size work to its favour.

On the other hand arch rival Thomas Cook UK boss Ian Derbyshire said these smaller operators had not had any "noticeable" effect on its business this summer. He added that the "softer" prices in the early part of the summer were due to weak consumer demand caused by the good UK weather and emergency budget.

... er that and a changing market anyway...

Oh well!

Cheers
Thanks for reading - private comments please to professorsabena@gmail.com

T2Impact is a business development, technology and strategic consulting group focused on helping firms to accelerate their growth either in new geographies or with new products and services. Our name derives from the companys focus; accelerating time and getting from idea to impact quickly for its clients.

We provide a full line of strategic planning services, including marketing plan development, joint venture opportunity evaluation, market and competitive research, process re-engineering, business plan validation and execution. 

www.T2Impact.com
 Latest News  (Click title to read article)




 Latest Articles  (Click title to read)




 Most Read Articles  (Click title to read)




~ Important Notice ~
Articles appearing on 4Hoteliers contain copyright material. They are meant for your personal use and may not be reproduced or redistributed. While 4Hoteliers makes every effort to ensure accuracy, we can not be held responsible for the content nor the views expressed, which may not necessarily be those of either the original author or 4Hoteliers or its agents.
© Copyright 4Hoteliers 2001-2025 ~ unless stated otherwise, all rights reserved.
You can read more about 4Hoteliers and our company here
Use of this web site is subject to our
terms & conditions of service and privacy policy