Mind the gap – in our commission payments

Mind the gap – in our commission payments

ATOC hires consultants to look at ways of changing payment structure

Move will affect thousands of agents

Report by LEE WINTER

TRAIN companies are considering axing commission payments to agents in an attempt to save costs.

In a move that mirrors British Airways’ controversial plan to axe commission, members of the Association of Train Operating Companies have hired top consultants to look at ways of changing the payment structure from the current flat rate of 9% on all bookings.

Train-operating companies want to see the structure changed to better reward the time actually spent on a sale. One consideration is to cut or even axe commission payments for lower-priced tickets.

The move will affect thousands of agents, especially the 1,600 rail-appointed retailers who are responsible for £250 million worth of ticket sales each year.

Those hardest hit will be leisure agents who will be less able to make up the shortfall by charging a fee and agents in the north, who sell more rail tickets.

Virgin Trains national sales manager Chris Ellyard said: “We are currently looking at remuneration for travel agents with other train operators through ATOC. Nothing has been decided but we are looking at the cost of a sale. We want to reward what agents do rather than operate on a flat fee basis, particularly the amount of time they spend on a sale.”

ATOCretail operations manager Mike Lamb said: “The aim is to look at remuneration for travel agents after the introduction of automated systems.

“What we are looking for is an overall picture of distribution – the way commission is distributed and the cost to travel agents and the rail industry.”

ARTACcommercial director Keith Wilson, who owns Worldchoice A L Travel in Normanton, west Yorkshire, warned: “If they simply cut commission, it will be a disaster for the retail agent. Many would return their rail licences.”

ABTA board member and convener of the Scottish Passenger Agents’ Association’s rail committee Sandy Macpherson pleaded with ATOC not to change the current structure.

“One idea is different commission levels for different products, with more commission paid for high value products they want to sell,” he said.

“However, the ideal would be for things to stay as they are. Having 9% across the board is uncomplicated and probably a fair reward for the work that is done.”

The consultants are due to report back to ATOC at the end of next month. Train companies will then consult with the trade. Any changes will be brought in during next summer.

Departure:the loss of commission would hit thousands of agents, especially those who are rail-appointed retailers