TUI warns agents not to undercut its online prices

TUI warns agents undercutting
By Lisa James
Home » TUI warns agents not to undercut its online prices

TUI UK has warned travel agents they’re not allowed to price-cut its online packages – and says any advertising that offers to beat the direct price must be taken down.

The operator wrote to some agents last week to tell say that, while it has no issue with agents advertising they can price-match TUI products, promoting a price-beating message is not acceptable.

The email, seen by Travel Gossip, says some agents are still advertising they can beat TUI online prices, despite previous requests from TUI not to do so.

TUI’s email says: “This practice is in direct competition with our own pricing strategy, a strategy that we have meticulously developed to enhance the earnings of our agents.

“While agents are permitted and welcome to advertise that they sell TUI products and can match prices, promoting a price-beating message is not acceptable.”

It goes on to warn: “Such a practice could potentially lead to a reduction in commissions, which would be counterproductive to our collective efforts. We firmly believe that the excellence of our product speaks for itself and it would be more beneficial to focus on selling points rather than engaging in a price war.

“We kindly request your cooperation in aligning with our strategic positioning. We are not seeking to undercut our own pricing, but rather to uphold the value of our exceptional product offerings.

“We respectfully request that any social media posts promoting price-beating be removed with immediate effect.”

In December, TUI launched trade incentives and tools to ensure agents achieve what Chief Marketing Officer Neil Swanson described as the ‘best peaks sales period ever’ for TUI sales.

TUI recently boosted its trade team with nine new members, bringing the total to 17.

Travel Gossip has asked TUI for a comment.

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