Thomson Holidays - Thomson Travel Agent
History of Thomsons Holidays Travel Group
In 1894, Roy Thomson, the founder of the Thomson company was born in Toronto. Roy Thomson came from a poor background, his father was an unsuccessful barber and to supplement the family's income his mother took in lodgers. Roy's first job was in a coal yard where he earned $5 a week.
From these very humble beginnings the Thomson Empire was born. Roy showed fortitude and resilience throughout his early career, as many of his earlier attempts to establish a profitable business failed.
The turning point came when Roy started a radio station, renting a radio license for one dollar. In the same building as the radio station, "The Press" newspaper was printed. Roy decided to buy the newspaper, turning it into an eight page daily newspaper. At the age of 42, Roy owned four radio stations and a small local newspaper. In order to grow his business, he borrowed $75,000 and entered into an informal partnership with Jack Cooke.
In 1943 Roy owned four newspapers and soon was able to buy any publication that came on the Canadian market. In 1950 he was appointed president of the Canadian Daily Newspaper Publishers Association. By 1952 he achieved the pinnacle of his then aspirations and became the president of Canadian Press. The supply of Canadian newspapers was drying up, so he turned his attention to the British market. He purchased the Scotman newsgroup and at the age of 59 he left Canada and started his new life in Scotland.
Roy then branched out into commercial television and bought the Scottish television franchise. Within two years, shares in Scottish television enabled him to purchase the Kemsley chain of newspapers which included the Sunday Times. In 1964 Roy Thomson was created a baron and took the title Lord Thomson of Fleet.
In 1965 Thomson branched out into the travel business and Thomson Travel was born. Profit growth continued until the mid 1970's, when intense competition and a downturn in the British economy caused a slow down. Thomson's main rival was a company called Clarksons, but it was Clarksons that went to the wall.
Using their position as market leaders, they were able to force
down hotel rates in order to maintain their price advantage over their rivals. As rival travel companies undercut Thomson to gain market share, Thomson used its financial strength to pursue a strategy of building market share through cost leadership in the belief that "in the end our competitors will have to stop selling holidays at prices which do not make money"
From the start, Thomson has owned the charter airline Britannia, this allowed them to guarantee a supply of flights for its holidays & flights. Thomson also acquired many independent travel agencies. With the branded travel agencies, under the name Lunn Poly, Thomson had ensured its products could be found on every High street in the UK. Thomson was also an early innovator of computerised reservations, giving travel agents the means to book travel arrangements directly.
By the 1980s Thomson Travel Group became the market leader. Thomson was selling over 3 million package holidays annually and with its acquisition of the Horizon Travel Group, Thomson Travel ranked in the top 100 companies in the UK.
Thomson's share of the travel market grew and many companies could not compete with Thomson's successful strategy. The climax of this process came with the take-over of Horizon by Thomson in 1988.
During the 1980s, profits for the top travel operators fell. This was due to intense cost cutting on the part of the leading tour operators and the quality of the package holiday falling.
Thomson's strategy was to expand its product range, offering tours to suit the age/destination/quality of their clientele. These new brochures included
Far and Away, Lakes and Mountains, City Breaks, Freestyle, Young at Heart, A la Carte, Platinum, Gold etc.
By the mid 1990s, sales of package holidays rose, and Thomson held onto its title of market leader in the travel business. In May 1998 the Thomson Travel Group were floated on the stock exchange with the Canadian parent company retaining 20% shareholding. Thomson's business at that time relied heavily on the British market; their share of the market was being challenged by the Airtours Company. Financial analysts compared Airtours global portfolio with Thomson's reliance on the UK market. With a looming price war, and no obvious expansion plans into the European market, share prices began to tumble. Within a year, Thomson had been transformed from a private buoyant travel company dominating the home market, to a weak public company ripe for take-over. This in fact happened and in the year 2000 the Preussag group took over the Thomson Travel Group.
Thomson under the ownership of Preussag has consolidated and grown. Lunn Poly, Britania Airways and Thomson, part of the TUI group, all now come under the umbrella name of Thomson.
The world of TUI includes over 750 travel retail stores in the UK and accounts for 20% of the travel market in the UK, selling over 2.7 million flights and holidays a year.
Recent advertisements on UK television for Thomson holidays have incorporated the music by Amber Music. To listen to the Thomson theme music Click Here
Why not check the weather in your chosen country or resort Click here
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