TUI moves £15m ad business into Krow

by Nicola Clark, Marketing 22-Nov-06

Holiday group TUI has appointed Krow to handle its £15m advertising account ahead of a refocus of its promotional efforts.

DDB London, which had worked on the business since April 2003, was
involved in the final pitch. JWT, VCCP and DLKW were also on the
shortlist. Managed by Agency Assessments International, the pitch was

overseen by Andrew Rayner, marketing director at TUI.

The appointment comes at a key time for the company, which owns the
Thomson and Thomsonfly brands, as it has been hit by the rise of low
cost online travel portals such as lastminute.com.

In response to this threat, TUI has shifted strategy to promote its
website and high-street shops. It has also switched from focusing on the
peak holiday booking periods to driving awareness throughout the
year.

Targeting customers directly has become increasingly important to the
group following its decision to slash the commission payments it makes
to travel agents. In May, TUI was rapped by the ASA for a press campaign
that used the line 'If your travel agent doesn't recommend a Thomson
holiday, you're probably paying too much'.

Earlier this year, Thomson sales and marketing director Miles Morgan
left the company following a management restructure. His duties were
handed to commercial director David Burling.