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Industry turns on online 'experts'

Thursday, September 02, 2010


Leading lights in the travel industry have rounded on online “experts” calling for customers to barter with agents, despite discounting being blamed for the collapse of several travel firms this summer.

Travel agents have long objected to Moneysavingexpert.com – founded by Martin Lewis – encouraging customers to haggle agents down, and TTG highlighted the issue after he appeared on Tonight with Trevor McDonald in 2005.


Lewis claimed he was a “fan of travel agents” and is as supportive of them as he can be (see comment, below). However, industry figures believe his advice has become more dangerous in a year when discounting has already been blamed – by PricewaterhouseCoopers among others – for pushing travel firms over the edge.


One of the most popular articles on the website, saying customers can get discounts of 15%,
  has provoked a furious reaction from agents.

Future Travel homeworker and TTG Face of Travel winner Martin Owens, who posted on the website after the failure of Kiss, said the advice could destroy agents’ livelihoods as they would “make pennies” if forced to give customers 15%.


Global Travel Group managing director Dave Clayton said it was “hard to believe” that customers would be able to secure 15% discounts. “Agents can’t afford to sell too cheaply,” he said. “Most agents don’t work on 15% margins. Lewis needs to realise he can’t be an expert on every industry. I think his customers will find he has called this one wrong.”


Travel Counsellors chairman David Speakman said there was a danger Lewis would encourage customers to book with firms that were cheap, but not necessarily financially secure. “It would be interesting to ask him how many people who took his advice booked with Goldtrail and Kiss,” he said.


“When you are booking a commodity, you always try to get the best price. But when you are booking a holiday, you should make sure that it is delivered properly. MoneySavingExpert commoditises everything.”


Worldchoice chairman Colin Heal said the advice was “misguided”. “Cheapness should balance with good standards of service,” he said. “Getting a discount on a roll of carpet or a piece of furniture is different from a holiday. Lewis needs to recognise that.”

Moneysavingexpert.com founder Martin Lewis responds to TTG: “I am a fan of travel agents. I have robustly defended them over the past five or six years as the DIY internet brokers have come to the fore.


“Whenever I’m asked by people if they should avoid the travel agent and do it themselves, I resolutely say no — if you are going away for seven, 10 or 14 days to an established resort you are likely to get a better deal with a travel agent.


“However, specifically in the lates market, haggling does work, and it would be remiss of Moneysavingexpert.com not to tell consumers that fact. If it didn’t, I’d be lynched by my visitors.


“I do listen to travel agents and I did make some changes to my advice following the TTG article five years ago. There is also a specific section on the website where travel agents can offer deals for customers.


“But if the travel industry continues to work in this way, I will tell people about it. This is an issue for the travel industry and how it sells its products. I’m not setting out to hurt travel agents, just to help consumers get the best deals.”



Comment on this Story


12  Responses to this Story

1.  Posted by Allen Miller, On 06/09/2010 14:10

I agree with everything said here but unfortunately, the travel industry shoots itself in the foot every year by starting a discount war from the 26th December, consumers laugh at brochure prices(what other industry discounts its products during its peak selling period?) Martin Lewis and the media generally, have 'programmed' the consumers into thinking they should get their holiday for next to nothing yet still demand the best of everything! People seem to accept that B&B at a half decent city hotel in the UK will cost £90 - £100 per night but suggest a week in the sun at a half decent hotel for the pro-rata price of £600/£700 pounds and suddenly it's too expensive and we're accused of profiteering! Yet for that they get return flights, at least half board, possibly full board and generally these days, All-Inclusive. There's, sunshine, entertainment, pools, kids clubs, sports and a host of other facilities, what city centre B&B offers all that for the same money? The comsumer must be re-educated or we'll end up having to pay them to take a holiday!


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2.  Posted by S Howells, On 03/09/2010 10:51

If you make your purchase decision on Martin Lewis' website and use one of his paying links then he seems to make good any financial loss. Many visitors to his site have lost money over Groupon vouchers that he has recommended via paying links and on his forum he provides an email contact to report any financial loss which MSE then sorts out. Whether it pays up or puts pressure on the merchant to pay up, I don't know. In his weekly email last year he said to buy tickets from Theme Park Tickets Direct for cheaper prices via a paying link so customers who lost money should use his forum to complain to MSE and ask for a refund.


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3.  Posted by Joanne rice, On 03/09/2010 08:32

I understand everyone's point of view, but in by slamming Martin Lewis's comments we're only serving to highlight his point and it make us look like we do have something to hide, like big juicy margins! If customers come asking for these discounts you don't have to offer them. Agents may not always be able to compete on price, that must be accepted. Instead you should focus on what you can compete on....service and advice, which customers won't get from a website! He has his agenda and the travel industry has theirs... instead of attacking him, you should be telling his followers what you CAN do for them. He is very popular and people listen to him. We shouldn't be demonising him but thinking about how we can utilise his voice.


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4.  Posted by Jacquey Fox, On 02/09/2010 22:25

Martin Lewis should be done under the trades description act for calling himself an expert on an industry he cleary doesn't know enough about. I lost count of the unrealistic price expectations of people this summer, mainly due to media speculation.


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5.  Posted by Martin Owens, On 02/09/2010 20:15

Martin Lewis's comment that he made changes to his advice 5 years ago shows how out of touch he is with the industry, the industry is nothing like it was 12 months ago, I want to interview him and grill him on GMTV or Tonight and ask him why he feels this is right. I want him to spend a day doing my job and see how he likes it, he obviously doesn't understand the industry and I think we should all stand up against this, now is a great oppurtunity to change the discounting mentality of consumers and show them what is happening now, will continue if prices are discounted lets all stand togethor and change for the better I mean anothe Travel Agent went today, the 2nd time oin 2 years. We are professionals and should stand united in this.
The price should be the price not discounted to stupid margins £10 on £2k bookings like some companies have done. This is our Proffession, Our Livelihoods and food on our tables, clothes for our children & our futures ......
MArtin Lewis says as long as we continue to discount he will tell everyone to do it still so what are we going to do about it......


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6.  Posted by karen osborne, On 02/09/2010 18:20

Fully agree, travel agents work on such low margins, and Martin Lewis is very wrong to think he is an expert in every field. Yes let him have a day as a travel agent and see how we work. All of these companies that are going under are forced to sell at such low margins, it becomes impossible to make a living. I refuse to match prices, my customers come back to me because I care about them and their holidays, they will sometimes come and ask me to price match, but more often than not I say its impossible. I have recently rebooked a lady who always books with me, and booked with an online agent because they were £30 each cheaper, with kiss flights, having now lost her holiday she has come back to me, booked another holiday and vowed never to go elsewhere again. So Martin, when you are booking something as important as your holiday, service and quality counts, quality of the holiday and quality of the travel agent. Most of my colleagues have spent 20 years+ becoming an expert in their field, so stop trying to destroy the travel industry and be fair.


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7.  Posted by Steve Guy, On 02/09/2010 14:46

I can't agree with the previous comments more strongly! How on earth can we give a customer 15% discount when we make 10% on most bookings. We'll all be out of business by the end of the month if we did that?! It defies belief! Do the math Mr Lewis!!


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8.  Posted by Jacqui Ridler, On 02/09/2010 14:15

Martin Lewis needs to take a leaf out of Simon Calders book, Simon gives his consumers constructive advice on how to save money but all his advise keeps the consumer protected and safe, the other thing that Simon has is years of travel experience that qualify's him to give this advice. What qualifies Mr Lewis to go on Radio 2 and give travel advise? I would like to know what Radio/Tv & Moneysavingexpert.com consumers who took the advice to call around to get the cheapest deal with the biggest discount resulting in booking with companies like Goldtrail and Kiss think of the advice now? I think they have forgoten the saying "you get what you pay for" or in some cases you pay for a holiday and end up with no holiday and a long wait for a refund. I never "beat" prices but when customers book with me they get security in the Co-operative brand and also my personal service - only yesterday I talked customers to Southamton port because their sat nav broke, if they had booked with a non personal service they probably would have missed the ship. Jacqui Ridler personal cruise specialist Future Travel.


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9.  Posted by Tom Berny, On 02/09/2010 14:03

We get many enquirers who think they can get discount mentioning similar but not competitive products that are lesser or even from agents in the country they want to visit.
I find that like many others if you say no they rarely come back.
On some product ranges notably fezbus we sell to agents and we would not undercut them by giving away their margin. No one should be so overpriced in this market as to afford to give away 15%.


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10.  Posted by Peter Cookson, On 02/09/2010 12:36

The average travel agent, if they are lucky, works on a Gross Profit of around 10% or 11%. Martin Lewis has no idea what he is talking about and probably doesn't even understand the relationship between the tour operator, who sets the prices, and the travel agents, who sells them. It would be impossible, under any circumstances, for any travel agent in the UK to give away a 15% discount and stay in business as they would be selling at a loss. Peter Cookson - Manging Director of Spear Travels (Jetclub Ltd)


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11.  Posted by Gillian Marshall, On 02/09/2010 12:33

I can't blame Martin Lewis for telling his subscribers to do exactly what the many Travel companies have encouraged customers to do for years - just look at any direct sell website. As long as operators and agents continue to discount, customers will continue to ask for one. Until those at the sharp end have enough confidence in their ability and service levels to say "NO", consumers will continue to push for the best price they can get.


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12.  Posted by JANE PEACOCK, On 02/09/2010 12:24

Martin Lewis does have some good money saving tips on his site, however when I heard him on GMTV telling people to haggle and get up to 15% discount or play one agent against another, always going back to the original agent I was furious. He really has no idea about the commision rates paid by tour ops, perhaps a day in the life of a travel agent would make him see sense!!


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