Trafalgar's global chief executive has taken a swipe at price increases imposed by rival Globus as he implied such rises lack integrity and cause uncertainty for travel agents and consumers.
Gavin Tollman, speaking to Travel Today from Cape Town, said suppliers have a duty to hold pricing and should plan ahead rather than hike prices midway through the booking season.
"We talk about being real partners of the travel agent and price integrity is integral to that," he said.
The Travel Corporation issued a statement late yesterday saying all its brands would be freezing prices despite a weakening of the Australian dollar and subsequent fluctuations in the exchange rate.
"The news is in stark contrast to the 10% price increase announced by Globus applicable to 2014 bookings and impacting all of its brands imminently," the company said.
Tollman said later that Trafalgar, and the wider company's "careful" hedging policy protects against price rises. Other firms should do likewise and better hedge their currency to avoid incurring the wrath of agents and consumers, he suggested.
"Demonstrating integrity and consistency remains the utmost priority for TTC brands when it comes to serving the trade and its clients," he said, in a clear dig at Globus.
Displaying one price "and then adding a further 10%" erodes consumer goodwill which impacts travel agents, Tollman added.
However, Globus family of brands managing director Australasia Stewart Williams responded to criticisms, insisting that despite the decision to increase prices, Globus continues to offer “exceptional value” across its product range and remains highly competitive.
“The Australian dollar has dropped by much more than 10% and we know this affects the entire travel industry,” he said. “Globus has offered a clear price advantage over its competitors for quite some time, and even with these changes our prices are still as good or in many cases better than other operators.”
The vast majority of 2014 travellers will not be affected by the price rises with 70% of the year’s touring program and 85% of its river cruising season already sold, Williams added.
The public criticism of Globus will further raise tensions between the two operators at a time when their relationship is already strained. Tollman last year accused competitors of attempting to replicate Trafalgars' "insider" approach to coach touring but without developing the product to back it up, an accusation he reiterated yesterday.
He claimed rivals are telling travel agents they are offering the same in-depth product as Trafalgar, an assertion that is simply not true, he said.
"They are saying they provide local experiences just like Trafalgar but are not delivering it," he said.
Tollman said Trafalgar's Real Deal trade campaign currently in market was designed to "remind" agents of its product range, he said.
"We have done so much ground work in enriching the experience of our guests and we don't want to lose momentum," he continued.
He denied the trade campaign was the result of a frustration at the number of agents' who have yet to buy into the new approach.
