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Agents react to surprise launch of TUI direct-sell budget brand

Agents have reacted with disappointment to news that TUI has launched a direct-to-consumer budget brand in the UK, with some suggesting they’d been let down by the operator.

The travel giant said the standalone Sundeals brand, which has been in development for 18 months, had been created in response to customer research ‘across a number of European markets’.

Designed, it said, for ‘savvy deal hunters’, it allows customers to pick from more than 20,000 hotels in over 100 destinations, which are packaged with a range of airlines, including easyJet and Ryanair as well as TUI. Customers can choose to add extras such as luggage and transfers.

Sundeals’ key destinations are Spain, Greece and Türkiye.

Customers will be able to book online, with support available via live chat.

A TUI spokesperson said: “Sundeals has been designed as an online travel agent proposition and therefore won’t be available for sale through independent travel agents.

“However, TUI’s commitment to the trade is unchanged. Independent agents remain an important partner for TUI and continue to have access to our extensive range of holidays, cruises and touring products.

“We’ve invested significantly in our trade support over recent years and remain focused on helping agents grow their businesses by selling TUI holidays.”

While some agents said it wasn’t surprising that TUI wanted a direct-sell budget brand to compete with the likes of Loveholidays and On the Beach, others suggested the operator had used them.

Posting in the Travel Gossip Facebook group, James Love of Tinas Travel said: “Why doesn’t TUI just tell the truth? Travel agents are an irritant that they would like to disappear and TUI  –  “our commitment to the trade is unchanged” –  travel agents are not so stupid that you can do the old look at my right had while I rip your wallet out with the left.

“This is the problem when you have two main tour operators who practically run a monopoly and no way to dynamic package to compete! Switch sell time people.”
Another agent, from Samantha Airways, said: “One thing I have learned about TUI is they are notorious for appealing to us, gaining the extra sales and then launching something that affects the trade with the extra sales that trade has given them. It has helped them launch this new venture.”
Edinburgh-based agent Peter Rintoul, a member of Your Holiday Booking, said: “They have basically been doing that anyhow for 40 years, constantly undercutting trade then smooching up only to do the same thing again.”
Other agents suggested the move would damage the TUI brand. Zoe Pope, Director of Everything But Ordinary, said: “That’s one way to devalue your brand, and another to make you look desperate. I’m not surprised.”

TUI said the Sundeals platform brings together inventory from across TUI Group and third-party accommodation and airline partners, giving customers access to a broader range of hotels, airlines and package holiday combinations, it said.

All flight-inclusive holidays booked through Sundeals are ATOL protected.

TUI said it was launching Sundeals first in the UK but with the ambition to roll it out to other European markets.

The operation is being led by Head of Commercial and Operations at First Choice Kevin Nelson (pictured), whose role was extended to  Managing Director of Sundeals in January, according to his LinkedIn profile.

Andy Stern, Head of Sales and Marketing at First Choice, has seen his role extended to cover Sundeals.

“Sundeals has been built to serve a different customer need to First Choice,” added the TUI spokesperson.

“It’s a new pan-European travel brand from TUI Group, designed for customers looking for a low-cost, no-frills holiday booking experience, while First Choice continues to operate as a separate business serving its existing customers in the UK

“In terms of colleagues, Sundeals is drawing on expertise from teams across the wider TUI Group, including the UK business. Kevin Nelson is Managing Director of both First Choice and Sundeals, and Andy Stern is Head of Sales & Marketing for both brands.

“Their involvement in Sundeals does not change their ongoing leadership of First Choice. More broadly, Sundeals draws on talent and capabilities from across the Group.”

Kevin said: “We know there is a large group of travellers who genuinely enjoy researching and planning their holidays. They’re confident, digitally savvy and like the feeling of finding a holiday, and deal, that’s right for them. But these travellers told us that they’re tired of spending hours going round in circles trying to compare options and work out whether they’ve truly found the right trip – a feeling that we’re calling Bookers Burnout.

“Sundeals has been designed specifically for these savvy deal hunters, helping them cut through the holiday clutter and make decisions with greater confidence.

“We’ve launched with a simple user experience focused on the core features customers told us they need most, and over time we’ll continue to introduce smart tools and innovations that make finding and evaluating holiday options even easier.”

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