TRAVEL agents are losing up to £1m a month in trade to lastminute.com because of the on-line service’s ability to secure preferential deals from suppliers.
The Internet company, launched in October 1998, already has 600,000 registered users and 14.5m page visits each month from people enticed by its promise of guaranteed lowest prices anywhere.
As a result, it currently has cheap deals with 30 national carriers, 1,000 hotels and 50 tour operators, including some of the big names in the industry. Observers estimate that lastminute.com’s travel sales are between £500,000-£1m a month.
Registered users are e-mailed details of new products on offer and users are not told the name of the supplier until the booking is completed. This enables suppliers to heavily discount their products and keep their details secret from high-street agents.
Lastminute.com head of new ideas Henry Lane Fox said: “There are a large amount of suppliers out there who do not want to be seen to be offering these great deals to us.
“To protect their own brand integrity, we hide their name. The fact we are able to communicate with so many people so quickly, means they tend to reward us with the better fares.
“Agents have to understand that the volume of sales and coverage is higher than an off-line agent would manage to achieve. Because of the size and volume of sales that we put through, it is easier for us to get good deals.”
Agents are furious that suppliers are not allowing them access to the same deals. Martin Churchill, sales manager of Holmes Travel, Suffolk was quoted a fare of £1,100 for a flight to Barbados with Virgin, but lost the sale when his client booked the same seat on lastminute.com for £350.
Churchill said:”My client now doubts my ability. He will never come to me for a fare again.”
Advantage Travel Centres commercial director Neil Armorgie said: “I understand the agent’s concern. It undermines his position in the market as being knowledgeable and having the best rates around.”
In a further threat to agents, lastminute.com is expanding into digital and interactive television and mobile phone bookings.
n See Comment, page 8