Speaking to TTG in the wake of the operator’s announcement this morning, Anderson said the move was based around improving customer experience.
“We are continually looking at our business and how we can grow our business even more. Our USP is putting the customer first and at the heart of everything, and how we can add more value for the customer.
“When we sell through the trade, it means we don’t talk to the customer directly, we need to make sure that the booking experience is [in line with ours] which we can only do if it’s direct with them.
“There is no way that we can give the customer the same experience that they would get by booking direct… The reality is that the trade accounts for less than 10% of our business – it’s just the way things are going today.”
Anderson insisted that the move had not been made in response “to something the trade has done wrong”.
He acknowledged that some in the trade “would react negatively”, but added: “This is not a reflection on the trade. We are in no way criticising our trade partners.”
Anderson said he had written to all of Virgin Holidays’ agent partners and insisted that the company would honour all of its bookings through them, but that the move would come into effect from today. Although he added that it would take effect at different times according to agents’ commercial agreements.
Asked whether the company was simply going down the route of British Airways, which went direct with BA Holidays several years ago, he replied: “We don’t look at what our competitors are doing – we’re focused on creating our own unique experience. It’s about adding value to the customer - we reached this decision ourselves, and it was nothing to do with what British Airways has done.”
Anderson was also keen to stress that the announcement was in no way linked to Virgin Atlantic. “There will be no change to our trade partners with Virgin Atlantic - that remains unaffected,” he insisted.
And when questioned as to whether he was concerned agents might respond by boycotting the company’s airline, Anderson replied simply: “I don’t believe so.”
With the renewed focus on the customer, he admitted the company would continue to invest in its 111 retail outlets, but said the move did not necessarily mean the company would be expanding its presence on the high street.
“It’s about quality, not quantity; it’s less about numbers, but about the experience that we are giving them – it’s about how we get customers to come back to us.
“We will absolutely continue to invest in these stores – where there are channels that customers use, we will invest in them.
“Holidays are not a tangible experience – we need to look at how we can make them come alive.”
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