| Journal: TWUK | Section: |
| Title: | Issue Date: 17/07/00 |
| Author: | Page Number: 1 |
| Copyright: Other |
BA under pressure to delay commission axe
Report by LISA JAMES
BRITISH Airways is coming under mounting pressure to postpone its plan to axe agents’ commission payments on January 1 next year.Senior travel agents say the airline has grossly underestimated the amount of work that needs to be carried out in order to make the whole process run smoothly and will not be able to introduce its new system of staggered payments before April, at the earliest.
Guild of Business Travel Agents chief executive Philip Carlisle said:”We believe BA will have problems getting everything up and running by January.”
Problems still being addressed include how to change the look of an air ticket to highlight a service fee charge and getting global distribution systems to make changes to their itineraries.
One source said:”Dropping commission may seem a simple process but it isn’t at all. BA may well be doing its bit to get everything ready but a lot of the changes need to be implemented by outside sources that do not see the work as a priority.
“Their attitude is’why should we change our systems to help BA?’ In short, many peopledo not think it has a hope in hell of being ready for January 1.”
Carlson Wagonlit Travel UK vice-president Jim Tweedie said:”BAhas had problems but is not yet ready to admit how bad they are. Many people believe the airline will postpone the commission rate changes until April next year.
“The main stumbling block is they have not been able to sort out problems on GDS systems but there are other factors. We want to know what is going on as soon as possible. We have invested a lot of money to change our systems.”
BTIUK managing director Mike Platt said:”BA has always promised us that if the systems are not in place it will delay introducing the payment system and we are assuming it will do that.”
BAhead of UK and Ireland sales Tiffany Hall said:”We are finalising detailed system specifications and at this time remain confident the project timescales are achievable. We have been assured by Galileo that it is doing everything possible to meet the deadlines.”
The airline will replace commission with payments of £6 for discounted domestic and Euro Traveller fares, £11 for full-fare domestic, Euro Traveller, Club Europe and discounted World Traveller fares and £20 per sector for full-fare World Traveller, World Traveller Plus, Club World, First and Concorde tickets. Agents are expected to make up shortfalls by charging fees.
Hall: claims the original timescale to axe commission will be met