Jet2holidays will pay out more than £75 million in commission to independent agents this year as it rolls out a ‘specialist travel agent’ programme.
The figure is up from £45 million in 2017 and £55 million in 2016, and chief executive Steve Heapy said he would like the amount to be even higher in 2019.
Speaking on the first night of the operator’s VIP Agents’ Conference in Antalya, Turkey, Heapy said: “As other operators are cutting back and paying agents less, we want to pay them even more.”
Heapy revealed agents account for 25% of Jet2holidays’ business and would book more than 900,000 passengers with the operator in 2019.
“Unlike others, we don’t have aspirations to increase the proportion of our direct business. We are very happy to see our trade element grow to 30, 40, 50 per cent – there’s no limit,” he said.
Jet2holidays’ proportion of trade sales has fallen since both Thomas Cook and Tui stopped selling the operator, something Heapy claimed had created an “opportunity for independents”.
“Trade sales were at 32% until our friends in Peterborough and Luton stopped selling us. But that’s fine. We don’t want them any more. This is an opportunity instead for independents.
“Give customers what they want – a Jet2 holiday – and remember that your independent agency is the only place on the high street they can buy one,” he said.
The latest Atol figures show Jet2holidays is licensed to carry 3.81 million passengers in 2019 – more than Thomas Cook (2.5 million) and On the Beach (1.3 million) combined.
“We have pulled away further from Cook and we are catching up with Tui – and we are still growing,” said Heapy.
Heapy reiterated his message from last year’s conference, urging independent agents not to sell Thomas Cook or Tui. He said: “If you’re an independent, why would you sell a Cook or a Tui holiday and give them money to keep the Cook or Tui agency across the road from you open and competing against you?
“There are challenges on the high street – just look at the number of businesses that have downsized or gone into liquidation. Yet the high street has a lot to offer. Independent agents have to – and do – demonstrate added value to justify the price, so they need to show good product knowledge and high-quality service.
“We want to work with every independent agent in the country, and to increase the amount of business that we do with them.”
More: Jet2holidays VIP conference: Operator unveils ‘specialist travel agent’ scheme