PICTURES: NEWSPICS/LONDON 2012
WORLD TRAVEL MARKET NEWS
MASSIVE
DISCOUNTS
COULD HARM
YOUR BRAND
Travel companies should be
wary of advertising on price
alone during the recession,
a panel of marketing experts
has warned.
In a Guild of Travel and
Tourism panel discussion at
World Travel Market,
analysis consultancy
Data2decisions director Karl
Waver said travel companies
should beware of the impact
on a brand caused by heavy
discounting.
“Price promotion could
damage your brand in the
long term but you might
have to do it if you have
inventory to shift. You are
better to do niche off ers that
are very targeted or give
discounts privately when
you are face-to-face with a
customer,” Waver said.
Travel consultant Justin
Cole said companies should
fi nd new ways of adding
value. “Diff erentiate your
brand by adding free extras –
don’t compete on price alone.”
But hotels4u.com sales
and marketing director John
Harding said travel fi rms had
no choice but to try to off er
the lowest price. “People will
choose the cheapest price.
Price comparison sites have
removed the opportunity to
add value.”
The ability of London’s public
transport to meet the demands
of the 2012 Olympics was
called into question as WTM
delegates struggled to reach
the venue during the event.
Exhibitors and delegates
driving to the fi rst day of WTM
saw their journey times doubled
as traffi c snarled up, while
those travelling by train were
forced to get off at Canning
Town because of a signal failure
and asked to take replacement
buses to London’s ExCeL.
The chaos continued on
Tuesday when the Docklands
Light Railway was suspended,
leaving hundreds stranded.
Turkey culture and tourism
minister Ertugrul Gunay said:
“I thought Istanbul was bad,
but having come to London I
see the problem is no different.”
However, tourism chiefs
speaking at the Tourism Question
Time debate maintained
00.00.2008
Consumer cover could become condition of membership
ABTA considers
total protection
Ian Taylor
ian.taylor@rbi.co.uk
ABTA could demand its members
offer consumer fi nancial
protection on every purchase.
Head of fi nancial services
Simon Bunce and board member
Steven Freudmann said
the association is considering
making consumer protection a
condition of membership.
However, Teletext Holidays
called for the ATOL protection
scheme overseen by the Civil
Aviation Authority to be
scrapped. Teletext only recently
became an ATOL holder.
Speaking at a WTM seminar
on whether the ATOL scheme
can survive, all three agreed the
system is confusing for the industry
and consumers.
Package holiday sales are
covered by ATOL protection,
but scheduled airline fl ights
and independently packaged
holidays lie outside the system,
with some retailers offering
comprehensive protection
through alternative schemes,
such as trust funds or failure
insurance.
Transport reliability in question
London’s transport system
would be ready for 2012.
O2 Arena chief executive
Phil Beard, who was on the
bidding committee, said: “Getting
around was a challenge in
Beijing – I am confi dent Lon-
“It would
disadvantage our
members if we
made protection
compulsory”
Bunce said: “We could make
it compulsory for members to
offer fi nancial protection. Our
board is discussing it.”
However, Freudmann
argued: “It would disadvantage
our members if we made
protection compulsory.”
He said ABTA would
continue to lobby ministers to
extend the ATOL system to
scheduled carriers. “We believe
there is mileage in lobbying
the government, arguing for
universal protection for travellers,”
he said.
On Holiday Group chief
executive Steve Endacott
insisted: “It’s taking too long.
I’m fed up hearing about an
extension of the ATOL scheme
and nothing happens.”
Teletext Holidays managing
director Matt Cheevers called
for ATOL protection to be
Tourism chiefs are confi dent the transport system will be ready for the London 2012 Olympics
don will be straightforward.”
VisitBritain chief executive
Tom Wright said problems getting
to ExCeL yesterday were
mainly down to bad luck. By
the time the Olympics start,
there will be about 13 trans-
4 | Travel Weekly | November 14 2008 www.travelweekly.co.uk
scrapped. “The industry does
not understand what is covered.
Cover the lot or scrap it and let
insurers pick up protection.”
Having applied for an ATOL
this year, Cheevers said: “The
process is a joke.”
New ATOL holders have to
provide a bond in case of failure
and Cheevers complained:
“The bond market is incredibly
diffi cult and expensive.”
Endacott said: “Companies
have to offer consumers something.
ABTA should make it
complusory to offer fi nancial
protection.”
FOR MORE WTM NEWS
TW TV speaks to the key tourism
ministers, takes a stroll around the
stands as well as asking representatives
on the US stands about the
‘Obama eff ect’.
Find out if the wet weather and
transport chaos put a dampener
on World Travel Market and to see
photos of the hottest celebrities at
the event go to www.travelweekly.
co.uk/wtm2008
port links to the site, using
road, rail, high-speed rail and
the underground, he said.
“Inevitably there are going
to be hiccups. It’s unfortunate
it’s happened on the fi rst
morning of WTM,” he added.
Chelsea footballers Ashley Cole, Didier
stand. Clive Wratten said: “It was great
Tourism
downturn
hits UK
economy
A downturn in tourism was
responsible for half the
contraction in the UK economy
in the three months to September,
with the country seeing a
substantial fall in visitors from
two of its major markets.
UK tourism minister Barbara
Follett revealed the unprecedented
fall in tourism’s contribution
to GDP following a 0.5%
shrinkage of the economy in
the third quarter of the year.
“Half the contraction came
from the hospitality and tourism
sector,” Follett said.
She revealed a 15% year-onyear
drop in visitors from North
America in the three months to
August, and a 25% fall in
visitors from Japan in the fi rst
eight months of the year.
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