Agents had long been unhappy with Tui’s rates of commission and their inability to compete with its online and direct pricing. And with Jet2holidays and newcomer easyJet holidays more than happy to service these agents’ clients, Tui ended up conceding market share.
But Tui’s trade lead believes the operator has over the past year overcome the initial "scepticism" from third-party agents, and is ready to step up its efforts in the coming months as the message changes from "give us a chance" to "give us a go".
Neil Swanson, Tui UK and Ireland’s chief marketing officer, says its courtship has already produced "significant double-digit" growth from the independent sector this year, which now accounts for a larger share of Tui’s overall sales.
“The reaction has been very, very good, and I’m incredibly pleased with the way it’s gone,” says Swanson, who cites one day in late January when sales through independent agents soared by 139% compared with the same day the previous year.
Hitting the road
Increasing rates of commission for independent agents has obviously been a key factor, as have efforts to strengthen Tui’s trade team, which now numbers 17 and includes a much larger on-the-road presence around the UK.
This, Swanson says, has allowed Tui to meet with about 1,700 individual agents around the country over the past year through visits to high street stores and head offices, as well as homeworkers. Swanson believes the team is about the right size for the moment, but stresses it could grow if agents wanted more training.
He emphasises the importance of establishing trust between Tui and agents, as well as giving them more knowledge about the operator’s “differentiated” or unique product that cannot be booked through its major competitors.
TTG’s day on the road visiting agents with Tui’s ’unicorn’
"We’ve continued to see significant double-digit growth this year," Swanson reveals. "My concern was that it was going to plateau, but we’re not seeing that at all. We are coming off a relatively low base, so there’s a lot of room for that trust to grow over time.
"It’s got to work for agents, otherwise, they would not be selling it – we’ve had a lot of positive feedback. Price parity is not there, but the increased commission allows them to compete effectively. Average selling prices are also higher for our holidays so they make more money with a percentage commission.”
Big sellers for independent agents through Tui have been traditional short-haul favourites like Spain, the Balearics and Turkey, while Mexico, Florida and the Dominican Republic have proved popular in the long-haul market.
Back to school
Another key plank of Tui’s rapprochement with the trade has been the introduction of the Wanderlust programme of educational trips for agents to get to know Tui’s brands and product range.
Swanson explains Tui has taken around 170 agents on fam trips this year, and reveals that this programme will grow in 2025 to include activity with Tui’s Marella Cruises brand.
These trips focus on the operator’s own accommodation brands such as Tui Blue, Sensatori and Holiday Village, as well as its ski product. He believes the educationals help illustrate the “breadth” of Tui product available to agents.
"There’s nothing like seeing it in the flesh – that’s a critical part,” he says. “We want to expose them to different sorts of product, which you would not get if you didn’t book with Tui. We’re doing something different, and offering the quality of product that agents are interested in.”
Swanson emphasises Tui’s extensive and, at times, unique programme, which currently extends to 84 destinations across 34 counties and includes long-haul packages "where other people don’t go". The company also sells cruises, city breaks and tours, and on an accommodation-only basis.
To bolster agents’ understanding of its offering, Tui is preparing to launch a new online training platform featuring videos and imagery from its range of brands and resorts. This, Swanson says, will be designed to “bring the product to life” and provide agents “much better content” to help agents sell Tui holidays.
Another potential development is the prospect of a dedicated conference for independent agents, although Swanson rules out a 2023 event. Tui already hosts a similar event for its in-house agency staff.
Eyes on peaks
Swanson insists Tui is "always building up to the next peaks" with thoughts already turning to summer 2025 – and he expects Tui’s current growth trajectory with the independent agent sector to continue into the new year.
“I don’t see why we won’t continue with that growth,” he says. “Historically, we’ve seen footfall on the high street go down. But we’re not seeing that in our own shops where footfall is strong and third-party agents are experiencing that too.
"We don’t see a huge number of people going around shops looking for price matches. Price is important, but it’s also about having good relationships and the right product at the right price. It’s about what customers want – it’s not rocket science."
Swanson adds: "Retail feels buoyant – I’m really optimistic we can do way more with third-party agents over the coming years. All I would say to agents who aren’t working with us yet is to give us a go and see how it works.”
Tui undoubtedly still has plenty of work to do to convince some agents the operator is serious about working with them again.
But Swanson is adamant the operator and its trade team are ready to talk with and listen to independent agents to find out exactly what it is they need from the travel giant.
