Trafalgar slams Globus pricing shift

Trafalgar slams Globus pricing shift
By admin


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.

Latest News

  • Destinations
  • Tour Operators

Mat McLachlan Battlefield Tours advises final call for Anzac Day 2025

Mat McLachlan Battlefield Tours has advised that the final call for Anzac Day 2025 is on 31 January 2025 with pre-registration also available for Anzac Day 2026. Travellers are encouraged to book their spot for either the 10-day Anzac Day on the Western Front departing on 19 April from Paris or the 8-day Anzac Day […]

  • Destinations
  • Hotels

Two destinations to visit in Mexico for Valentine’s Day

Valentine’s Day is quickly approaching and here are two romantic getaway destinations in Mexico to make any traveller’s day with their special someone even better. Casona Roma Norte, Mexico City This Valentine’s Day is the perfect time to visit Mexico City, as the streets come alive with roses, heartfelt gifts, and the city basks in […]

  • Aviation
  • Luxury

Emirates debuts new uniform for Premium and VIP Passenger Services team

Emirates has debuted a new uniform designed for its Premium & VIP Passengers Services team, who are responsible for the seamless transfer of VIPs through Dubai International Airport. The new uniform has echoes of the iconic Emirates cabin crew look, however, exclusively represents Emirates’ elite unit that caters to high profile customers. A new look […]

  • Appointments
  • News

BEIA appoints Rachel Cook as its new chair

The Business Events Industry Aotearoa (BEIA) Approved Professional Conference Organisers (PCO) Group has appointed Rachel Cook as its new chair. Cook is the business director of Conference Innovators (CI) and since joining CI 20 years ago has been instrumental in the company’s continuing growth and success. She plays a pivotal role in building and supporting […]

  • Hotels

Gaya Island Resort unveils its Wildlife Wonders package

Gaya Island Resort has unveiled its Wildlife Wonders package, a meticulously crafted 4-day, 3-night adventure designed for nature enthusiasts eager to discover the island’s rich biodiversity. The resort is nestled on the tranquil shores of Pulau Gaya, the largest island in Tunku Abdul Rahman Marine Park just off Kota Kinabalu. Its location makes it the […]

  • News

New Caledonia is open and ready for business as Smartraveller downgrades warning

Eight months after the civil unrest, the South Pacific destination of New Caledonia has reopened and is ready to welcome Australian tourists. Smartraveller has recently downgraded its travel advice to the destination following the removal of the nation’s curfew on the 2nd of December. The island is currently rated as amber – ‘exercise a high […]

  • Business Travel
  • Hotels

Atura Wellington unveils newly refurbished rooms in the New Zealand hotel

Atura Wellington, the former Thorndon Hotel by Rydges, has unveiled its newly refurbished rooms in the New Zealand hotel. The rooms were completed following a full refurbishment of all public spaces as part of a broader redevelopment plan. All 108 guest rooms have now been upgraded. The hotel is in the historic Thorndon neighbourhood and […]