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Travel Weekly > News > Wholesalers split over discounting
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Wholesalers split over discounting

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Published on: 23rd July 2012 at 3:01 PM
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Adventure World has insisted it will not succumb to a spate of heavy discounting as the collapse of adventure travel firm Kumuka sees some suppliers slash prices by as much as 30%.

The firm's head of sales, marketing and product Di Moynihan described the collapse as “very sad” but said heavy discounting by suppliers stepping into the breach left by Kumuka made it “incredibly difficult” to compete.

“You can either discount with them and take the risks that go with that, or you can stay true to your value offering,” she told Travel Today.

Australians are not price driven when it comes to making travel decisions, according to Moynihan. Instead, they are interested in value for money, in the form of inclusions.

“You can’t completely sell on price,” she said.

Instead, Adventure World will assist those affected by the Kumuka folding by “servicing those clients' needs” and attempting to find them the closest possible match to their cancelled itinerary.

However, Tucan Travel marketing manager Todd Barry defended its offer of a 30% discount on equivalent tours for Kumuka customers.

“We’re just trying to help,” he said. “There are so many people that are stuck and have got their airfares booked.”

Barry reported a large amount of inquiries coming from customers whose travel plans had been affected.

While he said the firm had tightened up on discounting over the last 12 months, he insisted price remained a major factor in the adventure travel sector.

“We need to be competitive in the market place,” he said.

But he stressed competitive pricing was not its sole platform for attracting sales.

“We’ve been around for 25 years,” he said. “We use local operators, put money back into the local community and are trusted by travel agents.”
 

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