Don't underestimate challenge, Turner warns JTG

Don't underestimate challenge, Turner warns JTG
By admin


Flight Centre boss Graham Turner has described Jetset Travelworld’s launch of a new retail brand as “a brave move” but warned the company not to underestimate the task ahead.

Turner said it will take JTG a decade to truly establish a new brand in the marketplace.

But he welcomed the possible resurgence of JTG, arguing that a stronger competitor will give the travel retail environment a whole lift.

Speaking to Travel Today after JTG revealed helloworld as its new retail brand, Turner said going with one of its established brands would, ideally, have been preferable.

“You’d like to go with an existing brand that has reasonable consumer awareness but there would probably have been a degree of jealousy from the other brands has that happened,” he said. “They have gone for a neutral brand, but starting from scratch is a brave move.

“To establish a new brand is a very expensive, long term business, particularly in this day and age. It will take 10 years to build and they should not underestimate what is involved in that. But it’s not necessarily a foolish thing to do. Only time will tell if it is the right move.

“Helloworld doesn’t say much to me, but it’s not negative and it depends how they are going to promote it.”

From Flight Centre’s perspective, Turner said a stronger JTG will create competition which ultimately will benefit the traditional retail sector in its battle against supplier-direct marketing.

“The more bricks and mortar agents survive and thrive the better it is for us. We have already seen airlines kill off agents in the US, so a strong bricks and mortar model helps us all,” Turner said.

The Flight Centre managing director also suggested that working with a third party technology supplier in Orbitz could be “challenging” if JTG wanted to create a “seamless” on and offline experience for its customers.

But he acknowledged the difficulty and expense in building technology in-house and said using the expertise of an existing supplier “was not necessarily a bad thing”.

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