Are you being served?

Christian Cull
Are you being served?
Kate Lomax
Director of Communications
Tel: 01582 646888
christian.cull@thomson.co.uk
kate.lomax@thomson.co.uk
Senior Press Officer
Other useful contacts
Corporate Communications
Thomson Worldwide
Imaginative Traveller,
Thomson Sport, Headwater
Crystal, Thomson Ski, Thomson
Lakes & Mountains, First Choice Snow
Michelle Jeffery
Kaya Rozwadowska
Lynsey Devon
Marion Telsnig
Tel: 01293 645700
Tel: 07813 111 423
Tel: +44 20 8939 8708
Head of PR – Mountain Activity Group
corporate.communications@tuitravel.com
kaya@kpr.uk.com
lynsey.devon@tuitravel.com
Tel: 020 8939 5027
Mob: 0771 204 7701
marion.telsnig@tuiski.com
(Based in our Kingston office)
Thomson Press Office
01582 645367
pressoffice@thomson.co.uk
First Choice Press Office
01582 645152
pressoffice@firstchoice.co.uk
Twitter@thomsonholidays
Printed on recycled paper
Thomson and First Choice Trends Report 2009
Second Anniversary Edition
A truly customer-focused
organisation can only work if it
encourages good and bad feedback
Introduction by Dermot Blastland,
Managing Director, TUI UK & Ireland
It’s been two years since we brought the market-leader Thomson and the family-focused
First Choice Holidays together under the TUI UK umbrella. We take over five and a half
million people abroad every year.
As we celebrate the second anniversary of the merger, I find it hard to believe how far
we’ve come.
Whilst continuing to offer the range of great holidays our customers have come to expect,
the merger made us re-assess our values and think about what really matters – our
customers. What can we do to make sure we build a customer-focused organisation fit for
the 21st century?
Whilst our achievements have been many, I am particularly proud of the organisational
changes that have been made to ensure that everything we do is thought out in terms of
how it might impact on the customer’s holiday experience.
Last year, we rolled out an internal initiative that placed customer service at the very heart
of our business. I know you’ll have heard other companies wax lyrical about this type of
thing, but (for those that know me!) I’ve never been one for platitudes… every single person
that works for Thomson or First Choice realises how their actions can have an impact,
positively and negatively, on the customer’s holiday experience, from accountants to cabin
crew, overseas holiday advisors to retail agents.
What we understood immediately was that it was essential that we listen to our customers
in order to improve what we do for them. For example, customer feedback has seen us take
hundreds of hotels that weren’t up to scratch out of our product mix. We’ve also retrained
thousands of people, incentivising them to be rewarded on improved customer satisfaction
rather than sales, and we’ve trialled new services at every step of the customer journey.
But what if the public in general has come to believe that no matter what they say, their
voice won’t be heard? A truly customer-focused organisation can only work if it
encourages good and bad feedback and knows in great detail what its customers want
from the organisation.
Therefore, for this, our third report since the merger, we have commissioned some research
into the consumer/company relationship, not just in travel, but across all industries. If we’re
to champion a cause, then we need to understand what the consumer is thinking – and
it’s clear that our customers, like us, share a desire for far better two-way communication.
For instance, four out of ten of us think companies and organisations of all types aren’t
listening to our needs. Equally importantly, the report finds that consumers aren’t telling
companies what they’re doing wrong or what they’re doing right.
We understand that, compared to some industries, tour operators have not always enjoyed
a reputation for being good listeners. We acknowledge that we have some way to go, and
this is something we are striving to change by initiating new feedback mechanisms that go
beyond customer satisfaction questionnaires.
However, if we are to change peoples’ expectations of how they are dealt with by
the holiday industry, then we need to let our customers know that by engaging and
communicating with us, we will listen…
…and learn.
3
Are you being served?
We are a nation
of frustrated
consumers
Who is listening?
Are companies and organisations listening to us? To find out, Thomson and First Choice
commissioned a nation-wide survey this summer, which was answered online by 917
members of the general public.
We are a nation of frustrated consumers according to the survey, which was undertaken for
Thomson and First Choice by eDigitalResearch.
The sample group were online respondents from across all demographic groups, with
travel habits not limited to package holidaymakers only.
Just 3% of respondents said they thought companies and organisations across all sectors
listened enough to them and their needs. Two-thirds felt they were listened to sometimes,
while the remainder of people felt that companies and organisations failed to listen to
them at all.
40
Yes Sometimes 3%
61%
No 36%
5
Source: eDigitalResearch
The survey also found that people felt that the best organisations for listening to their
needs were those with regular face-to-face connections, such as supermarkets and high
street shops.
Unsurprisingly given the credit crunch, banks, building societies and political parties ranked
among those judged as the least likely to listen to people’s needs. More than a third of
those sampled said that banks and building societies didn’t listen to them at all.
In terms of the brands that came out favourably, it was not a surprise to see Amazon
taking the top spot for companies that listen, scoring more than double any other
organisation. It has proven feedback mechanisms in place that help it to come
across as open and responsive.
Which sectors are best at listening to
your needs?
Which organisation or company is
the best in this sector?
(unprompted answers)
1. Supermarkets
Tesco
28%
100%
2. Restaurants
97%
Local Restaurants
14%
3. High street shops
88%
Marks & Spencers
28%
4. Hotels
87%
Premier Inn
18%
5. Online companies
86%
Amazon
63%
6. Regional media (TV, print and online)71%
BBC Local news
27%
7. Tour operators
Thomson
20%
8. National media (TV, print and online)60%
BBC
22%
9. Mobile phone companies
56%
2
O
23%
10.Airlines
54%
BA
26%
11.Banks and building societies
47%
Lloyds TSB
10%
12.Political parties
32%
Conservative
27%
63%
Source: eDigitalResearch
Respondents were asked a multiple choice question and requested to rank sectors in order and select
a brand that listens
How are people communicating?
Are customers communicating their concerns with organisations effectively? In addition to
the independent research, Thomson and First Choice undertook an online survey, which
was completed by 800 of their own customers, bringing the total research sample to more
than 1,700 people.
All those surveyed were asked how they shared information about their holiday. Nine out
of ten said they told family and friends about their experience, but only a quarter said they
completed reviews on independent forums. Around a fifth uploaded photographs on to
social networking sites or wrote reviews on holiday company websites.
About six out of ten people said they had written a letter of complaint about a previous
holiday, seven out of ten had completed an organisation’s satisfaction form and just over
a third said they had written a letter of praise. But one in ten said that they give no
feedback whatsoever.
When you return from holiday, how do you share information about your holiday
with others?
6
General Public
Thomson/First Choice
Customers
I speak to friends and family
Not Asked 93%
I submit reviews about the holiday
experience I’ve had on independent
forums
24%
26%
I upload photos on to social networking
groups like Facebook
21%
20%
I submit reviews about the holiday
I’ve had on the travel company’s website
19%
16%
I Tweet about my travels
9%
2%
Source: eDigitalResearch and TUI online research
Have you ever written any of the following about a travel related issue?
General Public
Thomson/First Choice
Customers
Letter of complaint
58%
55%*
Letter of praise
53%
21%*
Online review
59%
34%
An organisation’s satisfaction form
73%
64%
None of the above
8%
11%
Source: eDigitalResearch and TUI online research
*Represents letter of complaint or praise sent to all travel companies and not necessarily a TUI UK brand
7
80% of people
say they
mostly trust
the reviews
they read
reviews to be written by people who are complaining, that people’s sense of expectations
and standards are so different that what suits one person doesn’t suit another, or they
expressed concern that the reviews may have been written by people with an interest in
the organisation being reviewed.
How frequently do you consult independent review sites such as TripAdvisor when
researching a holiday?
General Public
Thomson/First Choice
Customers
Yes always/regularly
38.03%
60.16%
Yes sometimes
46.01%
23.35%
I rarely consult the review sites
12.61%
8.97%
I never consult the review sites
3.36%
7.52%
Source: eDigitalResearch and TUI online research
When you read independent review sites, how much do you trust what has been
written by other people?
8
How are people researching?
General Public
Thomson/First Choice
Customers
I fully trust the reviews I read 3%
2%
I mostly trust the reviews I read 77%
83%
I trust very little of the reviews I read 18%
14%
I don’t trust any of the reviews I read
2%
1%
Source: eDigitalResearch and TUI online research
Nearly 50% of respondents in our independent research and 71% of consumers polled
in Thomson and First Choice’s survey cited independent websites as their number one
method of researching their holidays. Independent online reviews were used by 60% of
respondents, while customer reviews on tour operator websites were used by 39% of the
general public. However, 50% of those simply asked their family and friends for advice.
When you read customer reviews on holiday companies’ websites, how much do you trust
what has been written?
General Public
We understand that these findings may be slightly higher due to the demographic of the
sample group as they are all online respondents. However, they are still very significant.
I fully trust what has been written
3%
I mostly trust what has been written
61%
30%
General Public
Thomson/First Choice
Customers
I trust very little of what has been written
Read online forums like TripAdvisor
48%
71%
Source:eDigitalResearch
Ask friends and family
50%
53%
I read newspaper features
45%
31%
I read customer reviews on holiday
companies’ websites
39%
Not available
I watch travel programmes
35%
52%
I get travel companies’ brochures
30%
70%
I subscribe to travel companies’
newsfeed and ezines
8%
12%
Source: eDigitalResearch and TUI online research
I don’t trust anything that has been written 6%
When you read descriptions in a tour operator’s brochures and websites about
destinations or accommodation, how much do you trust what has been written?
General Public
Thomson/First Choice
Customers
I fully trust what has been written
2%
4%
I mostly trust what has been written
43%
77%
I trust very little of what has been written
39%
18%
I don’t trust anything that has been written 16%
While only a quarter of people surveyed online say they may place reviews online, around
half of these travellers say that they always or regularly consult them. An impressive 80%
of people say they mostly trust the reviews they read, although a fifth are sceptical, saying
they have to be taken with a pinch of salt for three key reasons – they expect most
Source: eDigitalResearch and TUI online research
1%
9
Sharing and acting on
customer opinions
50,000 website
comments have
been submitted
since 2005
The consumer research shows that almost three-quarters of Thomson and First Choice
customers looked for online forums like TripAdvisor to research their holiday, compared to
just under half the general population.
That interest from Thomson and First Choice customers is a reflection on the way the
organisation has worked hard to share customer opinions.
Both Thomson and First Choice have featured customer views in their brochures for many
years by printing statistical results taken from completed customer satisfaction forms.
This means that all travellers can see how others rated particular properties on a range of
criteria, such as the holiday overall, property location and food quality.
Since 2005, customers have also been encouraged to add their own reviews to the
Thomson website, with more than 50,000 comments submitted to date. In 2007,
TripAdvisor reviews were introduced to thomson.co.uk so that customers could see an
even wider range of views on particular hotels.
10
0
What is perhaps less widely known is that the company’s Product Managers have been
acting on this information. They monitor both the customer satisfaction scores and
TripAdvisor to gauge quality levels and then contact relevant hotels to understand and
address any issues before they become a problem.
Later this year thomson.co.uk will also feature customer reviews from the Holidays
Uncovered website alongside TripAdvisor, giving customers access to some 150,000
more independent reviews.
What’s new for 2009 and 2010?
NEW MyThomson will launch this week for customers seeking further information
about their future holiday once they’ve booked. MyThomson, a personalised pre-departure
website for online customers, will improve the pre-departure experience by providing all
holiday details and information in one place.
Launched to Thomson’s Premier customers first, MyThomson will then be rolled out to all
Thomson online bookers. Once logged in, customers will be able to view useful information
such as the weather forecast for their holiday destination and directions to the airport from
their home (powered by Google Maps). Further details about the hotel and destination will
also be available, with links to videos and photos. MyThomson is also set to feature a useful
holiday checklist application as well as a function where customers can email our resort
team with any further questions they may have.
NEW More sharing Thomson and First Choice is launching a dedicated customer web
page which will list the initiatives the company is working on to improve holidays and will
ask customers to email suggestions. (Due to be announced on 3 September 2009.)
NEW More listening The company is also developing a research panel of more than
8,000 travellers to gauge interest and opinions into new products and services of the future.
NEW
More feedback Customer reviews will be added to the First Choice website.
11
0
From the top to the bottom of
the business everything is being
done under the scrutiny of
whether it’s right for customers
A velvet revolution
Thomson and First Choice came together under joint ownership two years ago. The first
year was primarily about the practical nuts-and-bolts of bringing two businesses together.
For example, Thomson Airways was established earlier this year as one major airline,
bringing the two companies’ fleets together into one streamlined service.
Over the past twelve months all parts of the business have undergone the commercial
equivalent of a velvet revolution to turn themselves into organisations that are driven by
customers’ needs, rather than by the supply of products.
From the top to the bottom of the business everything is being done under the scrutiny of
whether it’s right for customers. First and foremost, the board level position of Customer
Director was created to ensure that business decisions are centred on the needs of
customers. There is also a dedicated “Customer Board” of senior managers that assess
whether commercial plans are right for holidaymakers. That board includes a
representative from each area of the company from Finance to Overseas. Since the
Customer Board was established, it has thrown out proposed cost savings that weren’t
in the customers’ interest, whilst encouraging new ideas from teams for improvements
that benefit customers.
12
Thomson and First Choice have also changed the way staff have been trained, rewarded
and recognised. They have undertaken trials to understand what customers like and
don’t like at every point on their journey. At a time when other organisations have been
cutting back in light of the recession, the company has made a massive investment in, and
commitment to, its people. It has substantially increased its training budget to improve
customer service – more than half a million pounds has been spent on Thomson Airways
cabin crew alone.
The results of that internal work, those trials and that training are now coming to fruition
and customers this summer will have seen early signals of that new approach with far
more to come. A trial of the new services and staff training in Cyprus last summer showed
that customers’ satisfaction scores for their Holiday Advisors (Reps) increased from
between 60 and 70%, to between 80 and 90%. But what was more important is that this
had a direct result on people’s overall holiday experience – increasing their overall score of
satisfaction by several points to the high 80s. Happy customers are more likely
to recommend and re-book.
Investment in research and people ensures that Thomson and First Choice’s ‘differentiated’
offering is well thought through and delivers a high quality product. Other tour
operators who have tried to copy these products, fail to understand that every detail
is well-researched and under-pinned by specific training. Not only that, in many cases
Thomson and First Choice work in partnership with suppliers to develop a product rather
than put a ‘ready-made’ solution into an existing hotel.
So what’s been going on and what are people going to experience in the future?
13
A pioneering
in-flight safety
video featuring
children was
introduced
earlier this year
Thomson Airways works hard to ensure that its flights depart on time. However, due to
the nature of air travel there are some situations beyond its control where a delay becomes
unavoidable. The airline has taken on board feedback from holidaymakers, who say:
“we need you most when things go wrong”. As a consequence, new initiatives have
been introduced at 21 UK airports this summer. These include:
• Delay co-ordinators: Dedicated representatives are now deployed in the event of a delay lasting over one hour. Their sole purpose is to provide support to customers and ensure that they are receiving the most up-to-date information available.
•
A more transparent approach: People facing a delay are often unclear of their own rights. Thomson and First Choice customers are now provided with a welfare wallet, which contains an apology from the Managing Director, clear guidelines on their legal rights and details on how the tour operator should assist them.
•
Help at the airport: The wallet also contains details of a new “delay h otline” offering those customers that are unable to speak to one of Thomson Airways’ r epresentatives at the airport the opportunity to telephone one of its agents. Furthermore, plans are already in place to enable customers to contact this resource via email and SMS.
Better in-flight experience
14
Better service in the build up
to a holiday
You’ve booked your holiday, you’ve crumpled the brochure pages, you’ve looked at every
picture of the hotel you can find on the website but you’re not sure if your elderly parent
will be able to walk to the beach, or whether there is sufficient shade in the pool to suit
your toddlers. Thomson and First Choice are now offering two new services before people
travel to answer absolutely any query:
A pre-departure careline – A team of UK-based Holiday Advisors are at the end of a
telephone to talk through any questions. The service features real-time updates from
resort on changes to local products and services. Holiday Advisors also have access to a
destination “wiki” – an online resource of thoughts, comments, facts and figures collated
by the entire Overseas team based on what they think may be of interest to customers.
Over the summer, the careline averaged 4,000 calls a week.
Contacting the resort directly – First Choice and Thomson now have a “Local Knowledge”
service for customers. Launched this summer, in some destinations, customers can send
specific questions about a hotel or destination to a dedicated e-mail address, and our
Overseas Holiday Advisors will get back to them with the answer.
Better airport experience
Thomson Airways has also been doing its part to improve the customer experience,
believing that a flight should be an enjoyable part of a customer’s holiday, not just a way of
getting from A to B. At the airport, the airline has invested in re-training all its third party
ground-handling agents, who now wear Thomson branded uniforms so that they can be
easily identified by any customers looking for assistance.
This summer, Thomson Airways has put in place Customer Experience Managers –
a minimum of one per flight – whose job is to ensure customers have a memorable
experience whilst onboard. Customer Experience Managers also make sure that customers
have a pleasant experience through the arrival airport by ensuring they’re escorted to
Thomson and First Choice resort Holiday Advisors directly, where local procedures allow.
As further evidence of the innovative way Thomson Airways is engaging with its customers,
a pioneering in-flight safety video featuring children was also introduced earlier this year, a
first for a UK airline. This creative approach towards what some passengers claimed to be
a boring and mundane part of flying is aimed at increasing audience engagement
and attention. This video is creating lots of debate with over 40,000 viewings on YouTube.
Initial feedback from those customers who have seen the film whilst travelling with
Thomson Airways has been extremely positive. Research shows a 15% increase in the
number of passengers who now pay full attention throughout the entire video.
Better experience in-resort
Thomson and First Choice welcome meetings have changed substantially in recent months.
They are shorter – around 25 minutes long – and focus on providing useful information and
guidance. Every Holiday Advisor, from the most experienced to new recruits, has also visited
or experienced whatever it is they’re advising customers on so as to be able to offer first
hand advice. It’s the tour operators’ equivalent of a London cab driver doing the ‘knowledge’,
so they can speak with real authority and experience. In addition, a 24/7 post departure
‘careline’ is available to all customers offering round the clock support, not only with regards
to simple advice, but also medical assistance in the unlikely event that it is required.
Better experience on the way home
Rather than arrive at the airport at exactly the same time as several other coaches, the
timing of transfer coaches is now phased to allow the gradual arrival of passengers at the
airport, reducing volumes and thereby queues.
15
17
16
Families driving new products
for First Choice
Demand for quality & experiences
driving new products for Thomson
First Choice undertook research that showed how important swimming pools are to
children with over 92% stating that they swam at least once a day on holiday. So in 2009,
First Choice launched Splash – a clear guide to holidays and hotels with the best water
facilities for families. It’s been a huge success with hotels such as Aqualand, AquaFantasy
and Jungle Aqua now the best sold for First Choice in each destination.
The ability to adapt to changes in consumer behaviour is one of Thomson’s key strengths,
especially when it comes to customers’ ever evolving needs and expectations. As travellers
have become more sophisticated, so Thomson launched Sensatori in 2008. Featuring five-star
accommodation and style at four-star prices, swim-up rooms, stylish design and gourmet
food.Sensatori is a further example of Thomson’s ongoing strategy of providing differentiated
products that offer quality, value-for-money holiday experiences.
First Choice has also made sure that it is genuinely listening to customers of all ages by
creating its first Kids ‘Cool Pool’ Board of Directors this year. The panel, made up of seven
children from around the UK, came together for the first time at the company’s head office
in Luton earlier this year. The advice provided by the kids was incorporated into a First Choice
Splash Resort specification checklist, which all potential Splash hotels will be judged against.
There’s also the possibility of their ideas being incorporated into the design plans at one of
First Choice’s future family resorts.
Thirteen Splash properties are being introduced for 2010 and bookings for next year have
outperformed all expectations. First Choice will look to extend Splash into longhaul destinations.
First Choice Holiday Villages are a concept developed from customer feedback and
incorporate everything families say would make their ideal break. This includes lots of
choice, space, entertainment and activities combined with great quality accommodation.
Families can enjoy top-of-the-range facilities, from action-packed adventure playgrounds
and waterparks through to innovative entertainment like drama courses, DJ or circus skills
and soccer schools. There are also dedicated adult-only bars and pools.
Advance bookings for the whole programme for Holiday Villages in 2010 are 200% ahead
of this time last year. In summer 2010, First Choice will open its first 5 Sun Holiday Village
in Rhodes. The all-inclusive resort will feature all of the fantastic family facilities which have
made Holiday Villages so popular, but in more luxurious surroundings including swim up
rooms an deluxe bedrooms.
The Sensatori concept is the flagship of Thomson’s Premier collection, and features state of
the art hotels and resorts that specialise in offering a deluxe holiday experience. Combined
with signature elements that include fine dining, service, activities, high-end entertainment
and dedicated areas for families and couples, the concept has proved hugely successful,
with customer satisfaction ratings at 90% or more.
Launched in Crete in 2008 and followed by Mexico in 2009, the number of Sensatori
Resorts will increase further in 2010 with a new hotel in Tenerife – the 5 star Sensatori
Resort, Tenerife (currently the Gran Melia Palacio de Isora).
Tours and Twins new for 2010
Thomson has identified a growing demand for flexible multi-centre stays as demand grows
for long haul holidays beyond the beaches. The survey of the general public found that 43%
of people are attracted to holidays where they can visit various destinations and experience
different cultures. However, one third of those surveyed felt it would be difficult to book
a ‘twin centre’ through tour operators because it’s not what people expect from a normal
package holiday. Thomson is all set to exceed those expectations by responding to consumer
interest in multi-centre holidays. The company will be enhancing its long haul “tours and
twins” programme for winter 2010 by increasing the duration flexibility of charter flights to
compete with scheduled and independent tailor-made holidays.
19
18
Modernising the Cruise
experience with Thomson Cruises
and Island Cruises
.
Thomson Cruises, the second largest British cruise line, has a reputation of being a reliable
and trusted brand offering great value cruising. Operating five ships to over 130 ports of
call, the company takes 200,000 passengers away every year. Island Cruises, which operates
one ship, incorporates a more casual style of cruising. Over the past few years, various
initiatives have been introduced to both cruise offerings to enhance and modernise the
experience, with several more set to be introduced over the coming months…
Less time wasted – Research tells us that Brits value port time above sea time, so
Thomson Cruises and Island Cruises are re-focusing all their energies on the fly-cruise
model. They now offer flights from more than 20 UK airports, so passengers don’t have
to waste time travelling to a major airport.
Honest pricing – In the current economic climate, customers value honest, transparent
prices with no hidden extras. With Thomson and Island there are no grey areas or hidden
charges – tips are included in the price, unlike some cruise companies that add up to an
18% service charge, with tips on top.
Go As You Please – Time sharers and people renting privately-owned overseas homes
are increasingly combining Thomson flights and cruises with a week in their own
accommodation to make a 14-night holiday. To cater to this new market, Thomson Destiny’s
departure day from Palma has been changed from Thursday to Saturday to fit rental
accommodation changeover day.
Adults-only cruises – These are scheduled for June and September next year on Thomson
Dream and are already proving to be a runaway success, so Thomson Cruises plans to add
more for winter 2010/11.
Various initiatives
introduced to
enhance and
modernise the
experience
Cruising with like-minded people – Ships are focused solely on the UK and Irish market.
and, as such, Thomson Cruises and Island Cruises offering can be totally tailored to meet
the needs of cruisers. Furthermore, prices onboard are in sterling, making it easier for
customers to budget and ensuring the ship continues to offer great value for money.
Explore on your own – The budget-conscious and the travel-savvy want to explore ports
by themselves, so Thomson Cruises is developing a series of podcasts for major ports.
The podcast – and accompanying map – will let customers explore ashore on their own,
at their own pace.
Dancing – With Strictly Come Dancing ever popular, Thomson Cruises introduced Darren
and Lilia’s ‘Get Up & Dance’, an onboard competition which saw guests compete on the
dance floor for a host of prizes including a free holiday. One outcome was the number of
participants that wanted to help those less experienced than themselves by teaching them
a few dance moves. Accordingly, for 2010, Thomson Cruises will offer generous incentives
to those customers acting as ‘Dance Hosts’ and willing to pass on their skills to others.
Attracting more first timers – With Ocean Village withdrawing from the cruise market,
it’s left to Thomson Cruises and Island Cruises to lead the march to attract more ‘firsttime cruisers’. A new programme of ‘test drives’ is being launched in ports that double as
beach resorts, such as Palma in Majorca. Customers staying in those resorts now have the
opportunity to discover Thomson Cruises on a tour that includes free lunch and a show.
Sharing the experience – Thomson Cruises ships will feature an onboard gallery for the
best photos taken by cruise customers. Pictures will also be displayed online for search
and review. At this time, internet access on board Cruise Ships is a payable service.
However, Thomson Cruises will offer free internet access from next year for customers
blogging onboard so that those set to travel can read about real time, real life experiences
before they go.
Green Goes Mainstream
In this current economic climate, cost is a major consideration for customers. Value-for
money prices will therefore be the primary consideration for holidaymakers when selecting
a break away. This is why First Choice and Thomson are seeking to make all areas of their
operations fairer and greener. When customers book a holiday through Thomson or
First Choice, they know that their trip will be socially responsible, in that it will benefit the
local community and people in the destination they are visiting. The Thomson and First
Choice research also highlights an important message that customers want to send back
to the company about the environment. Over 73% of respondents believe it is very or quite
important for companies to continue investing in sustainability issues during a recession.
Research undertaken by Thomson and First Choice has revealed that the environment
and sustainability are now concerns for mainstream travellers, not just those with a
commitment to eco-tourism. The survey showed that 60% of the population would be
more likely or a little more likely to book with a company that showed greener business
practices such as employing local people, sourcing local produce and using hotels that did
not waste energy.
Just over half of travellers feel that the responsibility for such actions lies with travel
companies and with the government of the country they are visiting. Over a third of
people think customers themselves should also take responsibility.
Would you be more likely to book with a holiday company that demonstrates its
commitment to the environment and local communities? This would include initiatives
such as ensuring hotels aren’t wasting energy and that they use local foods and employ
local people.
20
General Public
Thomson/First Choice
Customers
Yes a little
41%
39.6%
Yes a lot
21.28%
18.13%
Neither more or less likely
37.89%
42%
Source: eDigitalResearch and TUI online research
Is it important for a company to continue investing in sustainable issues during a
recession to help protect the environment, local communities and people?
General Public
Thomson/First Choice
Customers
Very important
9%
32%
Quite important
7%
41%
Somewhat important
38%
23%
Not very/not important
46%
4%
Source: eDigitalResearch and TUI online research
Cecilia Aban Ay, from the Chumpon community in Quintana Roo, Mexico
First Choice and Thomson
are seeking to make all
areas of their operations
fairer and greener
Demonstrating its continuing commitment to sustainable tourism, TUI Travel PLC (TUI
Travel UK’s parent company) has in place approximately 23 full-time equivalent employees
with a focus on sustainability issues. This includes the newly formed role of Environment
Manager for Thomson Airways, which it invested in at a time when most organisations were
feeling the pinch of the recession. This role will place environmental issues at the forefront
of all airline activities, ensuring colleagues know how to play their part and making sure that
the fleet continues to operate in an environmentally responsible manner.
Green innovation – In spring 2009, First Choice launched
the first dedicated Greener Holidays brochure produced
by a mainstream travel company. The downloadable
brochure features hotels from across the world that
have received a Travelife award for their commitment to
the environment, employees and local communities. It’s
also packed with tips on sustainable activities and what
travellers can do to make a difference both before and
during their holiday. On 3 September 2009 First Choice
is launching the second edition of its brochure.
firstchoice.co.uk/greener-holidays
21
When asked about their
2010 plans, only 5%
said they were planning
a UK break
23
22
How will we travel in 2010?
Of the 15-16% who will change their holiday plans
The credit crunch means Britons are fed up being fed up and are already planning next
year’s annual break despite the gloomy economic outlook.
An overwhelming 80% of survey respondents said they were planning a 2010 holiday,
with only 4% saying they were not looking to travel next year. Equally optimistic was the
finding that only 11% are planning to spend less on their travels than they did this year,
while nearly 55% were hoping to spend the same and an encouraging 24% were counting
on spending more. This may be a sign that, despite the recession, some people on variable
rate mortgages have seen their disposable monthly income rise.
Holiday spending plans
This year
Next year
Plan on spending more
18.19%
23.65%
Plan on spending the same
49.28%
54.61%
Plan on spending less
27.36%
11.30%
Don’t know
3.3%
10.43%
This year
Next year
I’ll holiday in Britain rather than abroad
42% (7%)*
31% (5%)*
- 11%
I’ll book closer to departure to get a
better deal
17% (3%)* 29% (5%)*
+ 12%
Going somewhere to get more for my
money e.g. outside the Euro Zone
16% (3%)*
35% (6%)*
+ 19%
Book an all-inclusive so I can budget 11% (2%)*
17% (3%)*
+ 6%
Consider a package holiday to get the
best deal
9% (1%)*
20% (3%)*
+11%
Consider a package holiday for extra security
in case an airline collapses
6% (1%)*
13% (2%)*
+ 7%
Decided not to take a holiday
7% (1%)*
4% (1%)*
- 3%
Source: eDigitalResearch
* Percentage of overall respondents
It takes a lot to put the British off their annual holiday, and, despite the country having
been in the grip of a recession since last autumn, an overwhelming 78% said this had not
led them to change their travel plans this year, while 79% said it would not affect their
2010 plans.
Source: eDigitalResearch
Changing holiday plans
YOY
difference
YOY
difference
This year
Next year
No the recession will not make me change
my travel plans
78%
79%
+1%
Yes the recession will change our travel plans
15%
16%
- 1%
In total, 6% of respondents said they were holidaying in the UK this year rather than
abroad because of the credit crunch. However, the survey was conducted in July, which had
generally dismal weather. This may be the reason that when asked about their 2010 plans,
only 5% said they were planning a UK break.
Travellers may also be looking at a different length of holiday rather than trading down
their expectations. Thomson and First Choice now offer a much wider range of ten and
eleven night holidays to offer more flexibility and choice.
Families versus Adults
without children
The research underlines how important the annual holiday is to families. Despite the
recession, 35% of the general public sample of adults with children said they would
be taking a break this year, but the figure dropped to 26.5% of those without children,
showing that holidays are more of a discretionary purchase in tough economic times for
those without a family.
The survey also illustrated the influencing factors families have in comparison to those
adults travelling without children. Nearly 15% more adults without children say they will
leave booking a holiday nearer departure to get better value for money
when compared with adults with kids, who would rather book early to
ensure they get the holiday they want at the time they want, such as
during school holidays.
24
The survey also found a noticeable difference in the way
that adults research their holidays once they have children. On average 45% of travellers
use newspaper features to research their holidays – but this is higher for people without
children (49%) compared to families (37%). Adults with children were slightly more likely
to use brochures and slightly less likely to subscribe to travel companies’ news feeds.
The report also shows how the weather plays a part in the booking process, with nearly
10% more adults with children saying they would go abroad if it is wet at home when
compared to adults without children.
Destination Value Hunters
This year, only 16% of travellers questioned said they were opting to holiday outside the
Euro Zone to get better value, but in 2010 the proportion of those planning to head for
destinations like Egypt and Turkey rises to 34%. However, contrary to public
perceptions, holidays in the Euro Zone don’t have to be expensive. Tour
operators negotiate season contracts with hoteliers up to 2 years in
advance. This means that holiday prices are less likely to be impacted
by currency fluctuations and companies such as Thomson
and First Choice can continue to offer excellent value for money.
Not only that, but on arrival, many Brits are discovering that Europe
is not as expensive as they thought it would be and are benefiting
from an infrastructure that is well-used to the needs of the British market.
Thomson Cruises and Island Cruises’ early sales for next summer show
that the East, outside the Euro Zone, is the new cruising hotspot.
For 2010 there are more new destinations to explore like
Montenegro and Slovenia, plus the value of Turkey as a cruise and
stay destination is proving a huge draw. Thomson Cruises is the UK’s
second largest cruise company, and is set to launch a new ship,
Thomson Dream (previously Costa Europa), in 2010. The cruise line
has been voted the number one cruise liner in several categories
by cruising enthusiasts on the cruisecritic.co.uk website.
All-inclusive value-hunters
This year and
next will see
all-inclusive
become even
more popular
The proportion of people saying they would consider booking an all-inclusive deal jumps
from 10% to 16% for next year.
All-inclusive holidays have grown by 32%* in the last five years as customers grow ever
more attracted by the great value for money, convenience and extensive facilities they
offer. Thomson and First Choice anticipate that this year and next will see all-inclusive
become even more popular, and many hotels have changed their board basis to satisfy
customer demand.
The credit crunch and fluctuating exchange rates have accelerated the trend, as consumers
– and especially budget-conscious families – look for certainty about their spending.
All-inclusive holidaymakers continue to see the benefits of paying all costs in pounds in
advance, where flights, transfers, accommodation and meals are taken care of, rather than
leave themselves open to the whims of the market and financial uncertainty, such as hefty
credit card bills on their return.
Thomson Cruises and Island Cruises offer early bookers an all-inclusive drinks package
that makes cruises better value than ever.
*As stated in ‘All Inclusive Holidays’ report, Mintel, April 2009.
Customer protection increases
in importance
The collapse of airlines and tour operators during the credit crunch means travellers are
also becoming savvier about consumer protection. Of those people who said the recession
had changed their holiday plans, 6% said they had or would consider booking a package
holiday, which offers extra security in the event of an airline collapse. But this figure more
than doubles to 13.5% when asked about their 2010 plans.
Bargain hunters to trade up
As hotel rates come down, so British travellers’ aspirations go up and a large proportion
of them (46%) said they would use the recession to book five star hotels at three or four
star prices. Travellers may be going further afield next year as well. More than 23% said
they would seek to buy a longer flight for the same price as one nearer to home – with
the added bonus that it is likely to land them in a cheaper country. Another sizeable
group – 18% of respondents – said they would snap up any offers on flight upgrades from
airlines keen to fill premium seats during the holiday season, the period when, traditionally,
business travellers do not fly.
Thomson has seen strong sales for its quality Platinum and BeachClub holidays this
summer with sales up by a quarter for Platinum holidays and by around 10% for
BeachClub holidays.
25
Swine Flu
The experience of the SARS outbreak in 2002/3 has probably led the travelling public to
take a long-term view of infectious diseases like Swine Flu. SARS was an eight-month
near-pandemic and, while it did affect those planning to travel longhaul to places like
Hong Kong, it did not put off UK travellers taking their annual break to other destinations.
The findings of the Thomson and First Choice research carried out by eDigitalResearch
showed that six out of ten people expect their travel plans to remain unchanged in the
event of a pandemic, but a quarter said they didn’t know what the impact would be.
Only 16% said they would change their 2010 travel plans in the event of a global flu
pandemic. In total, 7% of the general public said that the most likely impact on them
would be not to take a holiday, while 6% said they would book closer to departure.
Just 3% said they would holiday in the UK. Another 3% said they would avoid crowds
like sporting events, and 2% were more likely to wait for a summer break than taking one
in winter. Only 2% said they would book self catering and just 1% said they would fly
shorter distances.
Air Passenger Duty Increases
26
Value hunters
Recognising that there are many travel deals and added value offers, around a third said
they would use this time to trade up on what they would normally buy. They said they
would do this by:
Buying a four or five star hotel at three or four star prices
46%
Booking a longer flight for the same price as somewhere nearer to home
24%
Trading up from half-board to all-inclusive to manage spending
23%
Upgrading my flight to premium seating
18%
Trading up from self-catering to hotel
15%
Source: eDigitalResearch
As the economic climate improves, value for money will doubtless remain a key factor in the
decision making process when it comes to booking a holiday. However, a proportion of the
holidaying population will almost certainly retain their preference for higher end, four star
plus products and increase their holiday budget accordingly at the expense of other, less
essential ‘luxuries’.
Thomson and
First Choice
urge the
government to
review this tax
Holidaymakers penalised by Air Passenger Duty increase
A further rise in Air Passenger Duty (APD) was confirmed in the April 2009 budget with the
first tax increase coming into force for people travelling after 1 November 2009. However,
the full impact of this ill-thought through taxation won’t be felt until 2010 when the second
of the two increases comes into force. When this occurs, the tax on a shorthaul economy
flight will rise from £10 to £12, but on longer flights of over 6,000 miles – typically a
twelve-hour flight – it will leap from £40 to £85.
Those choosing premium economy seats are also penalised. It does not seem right that
families seeking a bit of extra legroom on their holiday flight to Florida should be asked to
pay the same amount of APD as a businessman flying first class to New York.
Thomson and First Choice has always recognised the “polluter pays” principle when
dealing with aviation emissions, but it has never supported APD because its revenue is
not specifically directed towards projects that benefit the environment. Specifically, it
does not reward airlines such as Thomson Airways that operate new generation aircraft
efficiently and with high load factors. This is because the charge is based on the number of
passengers carried rather than on actual emissions.
Thomson and First Choice urge the Government to review this tax before it starts to have a
detrimental effect on foreign travel. The company also hopes, particularly in the run-up to
a general election, that the Government realises the importance that people attach to their
holidays, and is actively encouraging its customers to sign up to a petition on the No.10
website to protest about this tax.
The petition can be found at: http://petitions.number10.gov.uk/APDIncrease
27
Christian Cull
Kate Lomax
Director of Communications
Tel: 01582 646888
christian.cull@thomson.co.uk
kate.lomax@thomson.co.uk
Senior Press Officer
Other useful contacts
Corporate Communications
Thomson Worldwide
Imaginative Traveller,
Thomson Sport, Headwater
Crystal, Thomson Ski, Thomson
Lakes & Mountains, First Choice Snow
Michelle Jeffery
Kaya Rozwadowska
Lynsey Devon
Marion Telsnig
Tel: 01293 645700
Tel: 07813 111 423
Tel: +44 20 8939 8708
Head of PR – Mountain Activity Group
corporate.communications@tuitravel.com
kaya@kpr.uk.com
lynsey.devon@tuitravel.com
Tel: 020 8939 5027
Mob: 0771 204 7701
marion.telsnig@tuiski.com
(Based in our Kingston office)
Thomson Press Office
01582 645367
pressoffice@thomson.co.uk
First Choice Press Office
01582 645152
pressoffice@firstchoice.co.uk
Twitter@thomsonholidays
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