The TTG Interview: Gold Medal and Travel 2 discuss survey and financial results
Jennifer MorrisThe end of March marked the close of Gold Medal and Travel 2’s first combined financial year, and saw the feedback from a survey of 3,500 agents. Jennifer Morris talks to director of sales and marketing, Gordon McCreadie, and director of product and commercial, Matt Appleby, about what both sets of results will mean for the brands.
Gold Medal and Travel 2 have had a busy start to 2017. Not only have the operators analysed the results of a survey of 3,500 agents, but they have also just emerged from a “phenomenally successful” financial year, which saw sales grow 15% across the B2B brands.
The rationale behind the survey was to clarify agents’ opinion on the two brands.
“The survey was our idea, as we like to make extra work for ourselves,” director of sales and marketing, Gordon McCreadie says with a grin.
“It was important to see how we stacked up not just as brands, but also against our competitors,” he adds earnestly.
“We didn’t want to have missed it [the message] if we were burying our heads in the sand and agents actually wanted a big change.”
Dnata acquired Stella Travel Services in 2014, which included Travel 2, bringing it under the same ownership as Gold Medal, which had been purchased just months earlier.
“We were really blown away by the response and how in-depth the insight was,” says McCreadie.
“It came back loud and clear that agents have fiercely bought into one brand over another.
“They see strengths in each brand and that’s helped us decide how we can shape the business in 2018 and beyond… But we know we’re not the finished article.”
Building brands
The survey was completed by agents across the UK and went out to homeworkers, franchisee businesses and OTAs as well as traditional high street agents.
It found that agents overwhelmingly wanted the two brands to remain distinct.
Matt Appleby, director of product and commercial, explains: “The response rate was about double what we were expecting, which gives us confidence in the results and a good platform to build the brands on going forward.
“Both Travel 2 and Gold Medal emerged as the two most preferred operators versus their competitors, using a Net Promoter Score.
“But also, the benchmark was not quite as high as we would like it to be, so we still need a bit of improvement, even though we are way ahead of the rest.”
The survey also found that many agents have a loyalty to one brand over the other. “This research allowed us to see what the key strengths were that generate the loyalty,” continues Appleby.
Travel 2 emerged as having a “really good product range”, and as being “quite fun and innovative”, while Gold Medal was described as having a good perceived strength from a service perspective, with knowledgeable staff.
“Being responsive to and supportive of agents came across loud and clear from agents across both brands, both scoring really well,” adds Appleby.
“Agents also told us that [across both brands] product, service and people were the most important factors when choosing which to book with.”
“Being responsive to and supportive of agents came across loud and clear from agents across the brands, both scoring really well”
Matt Appleby
The survey also identified areas for improvement, however.
There were agents who did not initially recognise Travel 2 as being a specialist for things such as cruise, touring or Europe.
“That’s something we will be raising awareness on, with more dedicated training, incentives and events focused on those parts of the business,” says Appleby.
Agents also requested more personalised contacts in the sales centre, so Gold Medal and Travel 2 are in the process of overhauling their telephony service, as well as making improvements to the websites – Gold Medal’s in particular.
Improved documentation – accuracy of information and look and feel – will be an area of focus as well.
The brands also asked agents what was most important to their customers, and price came out on top along with relationships with Gold Medal and Travel 2’s staff.
“We are continuing to look at ways to not only recruit the right people but keep our key people engaged and invested in the business,” McCreadie tells me. Already, 50% of the Gold Medal sales centre has more than five years’ experience.
“Both brands used to do quite large intakes of new recruits a few times a year, but now we are doing more regular intakes of smaller groups to create less disruption,” says McCreadie.
“We’re pretty much recruiting throughout the year.”
“Agents have fiercely bought into one brand over another. That’s helped us decide how we can shape the business.”
Gordon McCreadie
Following the survey, agents can expect to see a number of changes, in addition to enhanced telephony systems and websites.
Last year the brands partnered with 26 individual agents to display Gold Medal or Travel 2 branding in their shops.
Across the stores the brands saw sales grow by £6.6 million, up 22% year-on-year.
“We will definitely be doing more of that,” grins McCreadie.
“It improved brand awareness and visibility in-store, and certainly seemed to get agents engaged and focused on the brand.
“We put the walls and racking in, pulled the brochure suite together and helped the agents with some marketing offers and extra training.
“It really delivered results, so we want to roll it out to more agents in the next year, particularly to those who need to bring their high street shop a little more up to date.”
Sexy campaigns
The coming year will also see Pure Luxury’s 10th birthday.
“Agents can expect rather large, impressive and sexy campaigns over the next few months,” says McCreadie.
The value of fam trips was also highlighted in the survey, so throughout this year and the next, the brands plan to take more than 800 agents overseas – an increase of about 30% year-on-year.
Elsewhere, this year’s awards will be “even bigger and glitzier”.
In the midst of these changes, Gold Medal and Travel 2 have reported a “phenomenally successful” financial year, ending March 31 – the first combined financial year for the brands. “Overall we grew the B2B brands by 15% year-on-year in terms of sales, on the back of a strong performance the previous year,” says McCreadie.
Package holiday sales collectively grew by 12%, accommodation-only increased by 15.5% and air-only by 19%.
Gold Medal Pure Luxury sales grew 29% year-on-year (after seeing its biggest ever trading week in January), and Simply Luxury by Travel 2 increased by 21% year-on-year.
Travel 2, which had its “biggest week ever” during peaks, also launched its first dedicated cruise brochure this year, and sales through Cruise Plus grew by 20% year-on-year.
Appleby says: “Cruise is definitely an area that is growing within our business, but we want to grow further over the next 12 months.
“We will be putting another brochure out and I would imagine it will be bigger.”
Destination divide
In terms of destinations, the Middle East was up 33% across the two brands – 21% for Gold Medal and 44% for Travel 2 – while the Indian Ocean was up 31% and the Caribbean up 20%.
Despite fears of a so-called “Trump slump”, the brands also saw US sales grow 9%.
“The Trump effect certainly hasn’t impacted on our brands,” says McCreadie. “The US performance has been phenomenal.
“Collectively it’s our biggest-selling destination.”
Asked what the headline takeaway from the research is, McCreadie replied: “The feedback was ‘keep doing what you’re doing but make it bigger, better and bolder’.
“And that’s what we plan to do,” he smiles.
Jennifer Morris
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