Just You launches travel trade solo experience

Just You launches travel trade solo experience

Friday, 21 October 2016 14:00

Just You h...

Spontaneous people are happier according to Snaptrip survey

Spontaneous people are happier according…

Friday, 21 October 2016 11:00

Spontaneous people are often believed to lead more exciting or glamorous lifestyles and a new study has confirmed that they are happier in all aspects of their lives.

Top Brighton attractions on Combi-Saver tickets for half term

Top Brighton attractions on Combi-Saver …

Friday, 21 October 2016 09:00

Visitors to Brighton this October half term can save up to 20% on its top three paid-for attractions with combination tickets now available for British Airways i360, SEA LIFE Brighton...

Free cabin upgrades with Cosmos Tours

Free cabin upgrades with Cosmos Tours

Thursday, 20 October 2016 14:00

There still’s time for agents to book a Croisieurope river cruise for their customers with a free cabin upgrade on a range of river cruises throughout Europe, when booked with...

Last minute autumn breaks available at Haven

Last minute autumn breaks available at H…

Thursday, 20 October 2016 11:00

Agents can still give their customers a last minute family break this autumn from £99 when booking a Haven holiday between now and November 5.

Skiers urged to head east for best piste costs reveals new report

Skiers urged to head east for best piste…

Thursday, 20 October 2016 08:00

Cash-conscious skiers can avoid the slippery slope of higher prices for their annual downhill trip by heading to ski resorts in Eastern Europe.

Design an anniversary poster for DFDS competition

Design an anniversary poster for DFDS co…

Wednesday, 19 October 2016 14:00

Ferry operator, DFDS, is putting out a call to professional and amateur artists to create a poster that will be used in their 150th anniversary celebrations this year.

Savings on worldwide adventures with Explore

Savings on worldwide adventures with Exp…

Wednesday, 19 October 2016 11:00

Explore has launched a new collection of worldwide adventures with a launch offer of up to 10% discount on all new trips booked by November 7.

New route to Seattle makes it one to watch for 2017

New route to Seattle makes it one to wat…

Wednesday, 19 October 2016 09:12

Seattle is expected to be one of the fastest growing US destinations for UK travellers next year with a Virgin Atlantic direct non-stop daily flight launching March 2017, new hotel...

Air Transat launches 2017 programme with increased connections across Canada

Air Transat launches 2017 programme with…

Tuesday, 18 October 2016 14:04

Air Transat has expanded its programme of flights from the UK to Canada with increased capacity and connections for travel in 2017.

Oceania Cruises reduces single supplement fares

Oceania Cruises reduces single supplemen…

Tuesday, 18 October 2016 14:02

Oceania Cruises has launched a reduced single supplement promotion for solo travellers, with guests offered single supplements fares from 25% on seven itineraries, booked before December 31.

Mall of America welcomes arrival of MythBusters

Mall of America welcomes arrival of Myth…

Tuesday, 18 October 2016 14:00

Running throughout autumn until January 15, 2017, visitors can ignite their curiosity and discover whether they can really huff and puff to blow a house down; if running in the...

Emirates to launch new daily service to Fort Lauderdale

Emirates to launch new daily service to …

Monday, 17 October 2016 11:00

Emirates has announced that it will launch a daily service between Dubai and Fort Lauderdale-Hollywood International Airport, on December 15, serving the South Florida area, including Fort Lauderdale, Miami and...

New tours in UK & Europe from Back-Roads Touring

New tours in UK & Europe from Back-R…

Monday, 17 October 2016 08:42

Small group tour specialist Back-Roads Touring has launched its summer 2017 brochure to reveal a unique line up of new itineraries in Switzerland, Scandinavia, the Baltics, France, Iberia and Russia.

Star studded cruise line up from CMV in 2017

Star studded cruise line up from CMV in …

Friday, 14 October 2016 10:16

Cruise & Maritime Voyages has announced five star-studded cruises for 2017 following the arrival of its new main brochure.

Non-stop flights to Manchester from SIA

Non-stop flights to Manchester from SIA

Friday, 14 October 2016 10:11

Singapore Airlines will fly non-stop between Singapore and Manchester from October 30 as part of its northern winter schedule.









The basics of the package holiday have changed little in 60 years and, having failed to adapt to changes in the consumer landscape, this once-classic holiday format has become less desirable among today’s demanding holiday-makers. During the package holiday heyday of the late 1990s more than 20 million were being sold every year, but this figure has been steadily decreasing ever since.

Jet2 reported earlier in 2014 that demand for package holidays was below expectations and, as a result, the business’s 2014 operating profit was lower than anticipated. For many consumers, booking package holidays with travel agents has come to mean fixed holiday durations and inconvenient, inflexible flight departure times.

As the margins on package holidays become increasingly tight, agents are under pressure to maintain profitability. To bridge profit margins, the travel industry relies on ancillary products as revenue generators, such as travel insurance, car hire, event tickets and prepaid currency cards. The first IdeaWorksCompany ancillary revenue report for 2007 identified profits of $2.45 billion from just 23 airlines. By 2013, ancillary revenue dramatically increased, to include a 1,200 per cent increase of ancillary revenue disclosed by airlines globally.

Prepaid travel cards in particular offer an attractive solution to travel agents and tour operators who are looking for increased revenue. As well as within the package holiday sector, we are also seeing rapid growth of prepaid travel cards across the wider industry. Indeed, bespoke holiday providers not only see the income potential but recognise the value that cards can have in maintaining their brand as ‘front of wallet, front of mind’. Cards also offer their customers a much safer alternative than carrying large sums of cash. However, it is common across the market for the operator to earn commission only on the initial load, without any incentives to continue to push the product to the consumer. There can also be challenges around branding, integration with existing IT platforms and building the cards into BAU activities. There is no partnership approach and this restricted process does little to sustain the relationship between supplier and tour operator, and lacks discernible benefits for both parties.

At Tuxedo, we believe such restrictive programmes will soon become a thing of the past, as tour operators and travel agents look for more flexible and financially beneficial prepaid card suppliers. Our partner-led solutions are developed with the distributing partner very much in mind, providing them with a tailored prepaid product, which not only provides an ancillary revenue stream but also integrates seamlessly with existing business practices or processes. Most importantly for distributing partners, our prepaid programme provides a competitive commission model, designed to deliver significant income potential for partners, offering a generous commission rate, paid over the life of the card, irrespective of how the card is loaded, rather than a one-off payment on the initial load, as has been the industry norm. Our approach is designed for longevity with our partners, offering them a simple and lucrative prepaid solution.

We have also identified a gap in the market for card solutions to be designed with the aim of improving brand engagement among partners’ own customers. With this in mind, it is key for payment providers to deliver the options of own brand, co-branded or white label solutions to allow travel agents and tour operators to test the effectiveness and value of a prepaid solution with an own-brand market entry product before perhaps moving on to a white label solution. A bespoke branded card, along with all elements of customer communications, such as website and email newsletters, is integral to increasing brand engagement among customers and encouraging customer loyalty.

It is also important to consider how the cards will be sold. Providers must recognise that sales of the cards should be tracked by source, channel, branch and agent (including home-worker) giving distributors improved performance and channel analysis as well as the ability to pay commissions to individuals based on card sales.

We are also seeing clients using the cards as an enhancement to their traditional marketing and sales promotions; offering preloaded cards to customers instead of discounting holidays or adding free packages. This approach not only reduces costs of promotions as income is earned once the cards are used, but also provides a simple and cost effective way to increase distribution quickly.

The benefits to the customer are transparent too. Prepaid travel cards provide a convenient and safe alternative to carrying cash abroad and purchases can be made online, over the phone or in store for free. Whilst the market trend has been for multi-currency cards, very few people in the UK ‘hedge’ their holiday money, typically leaving it close to their departure before purchasing currency. As such, we believe that an alternative solution offers card holders much greater flexibility and reduced costs. Loading the card with GBP and currency conversion done at point of use, no matter where the cardholder is in the world, gives the cardholder a much more flexible solution as the card can be used in multiple destinations, on the same trip or future holidays, without the need to pay to re-convert currencies.

Through its adoption of prepaid cards, the travel industry can begin to lead the way along an emerging path of sales and currency processes, answering an inherent need for innovative, efficient and profitable solutions across the market.

twn Are you sure that you want to switch to desktop version?