TUI UK managing director Peter Rothwell spelled out the motives behind the company`s move out of London on the opening day of the World Travel Market…
TUI UK managing director Peter Rothwell spelled out the motives behind the company`s move out of London on the opening day of the World Travel Market at London Docklands ExCeL.
He revealed that TUI`s plan to set up head office near Luton Airport by November 2005 was driven by cost cuts to make sure it can compete with the Internet players.
Customers will pay for product but they will not pay for the London head office or my car parking space, said Rothwell.
We also cannot continue to spend tens of millions of pounds supporting two brands. I had to have the guts to change it.
TUI has scrapped the Lunn Poly brand and are making 800 redundancies across the business.
Rothwell added that the introduction of the Thomson brand to the High Street did not mean it would lead to an increase in directional selling.
There will be no difference in what we sell through Thomson shops than is sold through Lunn Poly.
He admitted that head office staff, which numbers 900, is disappointed at the switch from North London to premises near their charter carrier Britannia and that only a small number of them would join in the exodus.
It could be an opportunity for staff to change their lifestyles. Luton is better value for money than London, he said.
He also explained that a raft of financial incentives such as travelling and relocation expenses would be offered to encourage staff to make the move.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
