Thomson Holidays 2013 Pricing Strategy Stays the Same

Tui travel the parent company of Thomson holidays looks like it will not be changing its marketing strategy after the announcement today from Thomas Cook holidays that it will no longer be offering online discounts. Especially after announcing a multi-million pound advertising campaign for the Thomson holidays 2013 summer season.

Thomas Cook holidays announced today that the online price for their holidays will be the same in all their travel agents. So rather than saving by booking direct online Thomas Cook customers will now pay the same in the travel shops as they would online.

Tui looks like they have ruled out any reduction in travel agents commission rates during the forthcoming peak sales period. So far there has been speculation that Thomas Cook's new pricing strategy could result in changes to their commercial agreements with third party agents This could effect independent travel agents and travel agencies owned by other holiday firms.

Tui had previously indicated that it was also considering price parity with their online sales and in their travel shops. Tui were also looking at charging a service charge to clients and this could also result in changes to their commercial agreements with third party agents.

The Thomas Cook an announcement today regarding moving to single pricing applies to its own brand of Thomas Cook package holidays. This also follows a similar move by Kuoni holidays who earlier this year removed its 5% online discount making its prices the same online as it would be a travel agents.

It will be interesting to see if travel agents themselves start to discount using their commission to drive business. Some of the cruise firms already this year reduced commission paid to travel agents to 5% to prevent them devaluing their products by discounting so much. This has seen a reduction in the discounting by travel agents on many cruises instead they are relying on offering clients a good service.