| Journal: TWUK | Section: |
| Title: | Issue Date: 03/07/00 |
| Author: | Page Number: 3 |
| Copyright: Other |
Deal replaces Advantage franchise
Commission levels remain competitive with additional bonuses available
Airtours signs five-year agreement with Global
Report by JANE ARCHER
AIRTOURS has signed a commercial agreement with Global Travel Group in the wake of the operator’s failed buyout bid last year.The deal will replace Airtours’ franchise with Advantage which collapsed in March.
Global founder George Begg said the operator offered more than £50m to buy the group last year but he turned it down.
Instead last year’s trial commercial agreement has been followed up by a five-year contract that gives Global members a big financial incentive to sell Airtours.
Begg would not reveal commission levels but said they will be at least as good as members of other consortia with additional bonus payments for high sales.
“Airtours is using carrots with Global, not sticks, as it did with the Advantage consortium which was why the franchise failed,” he added.
“There will be no change in the culture or concept of the group,” Begg emphasised.
“Existing agreements with First Choice and Cosmos will stay in place.”
A chairman’s role and chief executive positions at head office will be created but details have not yet been finalised.
The agreement includes a multimillion pound investment by Airtours to develop Global’s marketing and technology strategies.
The money will be used initially to fund a new retail business development team to be based at head office and help members maximise their earnings.
“We will be recruiting seven people immediately. I want them to be in place as soon as possible,” said Begg.
The money will also be used to develop Global’s technology, including giving members Internet access at the point of sale to selected sites controlled by head office.
Agents will be guided to these sites through ‘wizards’ in the system.
“We will start implementing this now, with roll out by the end of the year,” said Begg. Clients will be directed to high-street agents from the Global site.
Begg: will benefit from multimillion pound investment