BAH in payment rethink after analysis reveals slump in sales

Distribution costs increase yet 50% of agents are failing to produce enough sales

BAH in payment rethink after analysis reveals slump in sales

Report by STEVEJONES

BRITISH Airways Holidays is looking to overhaul its commission structure amid claims that up to 50% of agents are failing to produce enough sales.

The alarming results emerged after analysis by the operator into the sales performance of agents.

It is expected to alert other operators who are also frustrated at spiralling distribution costs.

BAH head of sales and marketing Colin Whaley is now in talks with consortia and multiples over providing commission and marketing funds only to those who actively support the operator.

Currently, it is locked in group-wide deals.

“Sales have decreased due to directional selling yet our cost of sale has gone up.

“We are talking to all agents about how we can improve it,” he said.

“We currently have group deals but in some cases up to 50% of outlets in a consortia or multiple are not selling very much or nothing at all. We need to be more sophisticated in who we work with.”

Whaley said some agency groups are willing to discuss a new commercial structure, while others are insisting any deal continues to apply across the membership.

“We want to determine which agents are interested in working with us in the long term. As an operator we have spread ourselves too thinly,” added Whaley.

The Crawley operator is also looking to develop its brand on the high street.

“We can’t rely on agency staff to recommend us as they will sell their in-house, or aligned operator, ahead of us,” said Whaley.

“We need more brand awareness.”

Whaley: holding talks with agents to see how to improve the sales through the trade