Feeds

Super soaraway Airtours banks on the Net

We predict a crash landing

  • alert
  • submit to reddit

Maximizing your infrastructure through virtualization

How far does a brand stretch? If you're Virgin or Sony, which last week launched a credit card for the Playstation generation in the UK, you can stretch your name to the moon and back. However, it's difficult to see people buying computer games or clothes from established banks (too dull, too crap). But it's very easy to see people buying financial services from their supermarket chain, such as Tesco or Sainsbury's. Which they are doing, in droves. But what about entrusting their money to their travel agent? This week, the British newspapers trailed the plans of Airtours, the UK's second biggest package holiday company, to form an online bank. Essentially this would be an online banking brand, as the Bank of Scotland has been lined up to do all the dirty back office work. Presumably, Airtours will offer travel insurance, some form of loyalty card scheme and what else? A current account, a credit card? This stretches our credulity. From what we infer, Airtours will run its online bank as a separate brand. Just as well. Package holidays = downmarket = chartered airplanes = late departures = cheap hotels = complaints = exposure on BBC TV's Watchdog. According to press reports, Airtours sells more than 10.5 million holidays a year. This gives it an "enormous customer base". But how many people who purchase holidays from the company actually think of themselves as Airtours "customers"? There may be lots of repeat business, but buyers are going to be using Airtours services no more than two or three times a year max. Business-oriented airlines such as BA or Lufthansa have much closer relationships with their pay-through-the-nose-because-they-need-to-fly clientele. And they're not jumping into Net banking. ®

The Power of One Infographic

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Airbus promises Wi-Fi – yay – and 3D movies (meh) in new A330
If the person in front reclines their seat, this could get interesting
UK Parliament rubber-stamps EMERGENCY data grab 'n' keep bill
Just 49 MPs oppose Drip's rushed timetable
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
US freemium mobile network eyes up Europe
FreedomPop touts 'free' calls, texts and data
prev story

Whitepapers

Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.