SEAT-ONLY

SEAT-ONLY

Internet bookings are boosting bookings for low-cost carriers but agents still have an opportunity to cash in.

In August, EasyJet scored an industry first by taking 80% of its sales on the Internet in one week, a total of 132,371 seats.

This figure compares with 38% through the Internet just over a year ago and reinforces EasyJet’s stance that it will eventually try to sell all tickets on the Web.

The demand for cheap airline tickets is strong and continues to grow judging by the amount of regular seat sales.

Not a week goes by without a new seat sale being launched by one of the low-cost airlines.

Whether it’s a ridiculously low £5 return fare to Italy on Ryanair or bargain £65 return to Paris on Buzz, there’s no doubt the low-cost carriers are keeping extremely competitive.

But according to ABTA, it’s not all doom and gloom for agents.

The trade association says there is a gap in the market for agents wanting to earn that little bit extra and claims there are opportunities aplenty for agents to increase commission payments by offering more ground services to complement low-cost flights, such as car hire and hotels.

ABTA also believes that increased competition will ultimately be good for the market as a whole.

An ABTAspokeswoman said: “What seems to be happening with the low-cost airlines is that they are growing the market and not stealing money from agents.

“As long as that is the case, retailers can benefit. But they have to take advantage of the low fares and turn them into attractive packages for customers.”

ABTA’s comments are echoed by BAsubsidiary Go. Despite offering agents a £5 discount on all leisure fares and an £8 discount on all business fares through its agent friendly on-line booking engine, the low-cost carrier still feels there’s more the agent could do.

A Go spokesman said: “The whole ethos of low-cost flights is you will have more money to spend once you arrive at your destination.

“With that extra cash, you could treat yourself to a nice hotel, or splash out on a hire car. You could either do this once you arrive, or sort it out with a travel agent before you go.

“There are opportunities for agents to increase the value of the package by including a low-cost flight.

“Agents could easily put together a tailor-made holiday package, because at the end of the day, people are only going to be on the flight for a couple of hours and they’ll be more interested with the saving and what it can get them at the other end.”

But following this month’s announcement of Go’s new route to Tenerife, it’s not only travel agents that may have to work harder.

The airline’s inaugural flight to Tenerife launches next month, a route that is expected to become a year-round destination.

As well as Tenerife, Go flies to the popular holiday destinations of Alicante and Ibiza, routes that ABTA believes could have an effect not only on agents but on the charter carriers that have ruled these routes since they became popular holiday hot spots.

An ABTAspokeswoman said: “Go’s new route to Tenerife is interesting because it could be in competition with the charter carriers. This is a big winter sun destination but it is also just another element of competition which is healthy.”

However, seat-only specialist Avro is confident the charter airlines will not be pushed off their coveted routes so easily.

Avro distribution director John Fitz-Gerald admits the low-cost airlines are now starting to take a share of the market but he is keen to stress what he believes is the difference between the low-cost carriers and charter airlines.

“Agents should be aware of the commission they can earn with seat-only specialists and the flexibility of travel.

“Avro offers 10% commission or more and by flying with a large number of charter operators, such as Monarch, Virgin Express, Britannia and Air 2000, there is much greater flexibility with the time of travel,” said Fitz-Gerald.

He added: “Another difference is that where charter airlines operate from all the major UK airports, if you choose to fly with a low-cost carrier. you will be limited largely to either Stansted or Luton.”

For low-cost airlines to really have an impact, new slots at the main London airports and the regional players could be what is needed to shake-up themarket.

Fare’s fair: with low prices to favourites such as Paris, there’s more chance to sell extras, such as car hire, on breaks