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Agents warned of threat posed by low-cost carriers

Report by Louise Longman

BUSINESS travel agents have lost out on £25 million worth of
commission from the low-cost airlines over the past year, Deloitte and Touche
head of aviation consulting Mark Darby told retailers.

Speaking at the Independent Business Travel Agents’
Conference 2000, Darby urged agents to start charging fees, or generate revenue
from non-airline sales, but “ignore low-cost airlines at your peril”.

He said: “sign up to agent schemes, such as the one offered
by Go, or start charging fees, but ignore low-cost airlines at your peril, they
are here to stay.”

He said low-cost airlines have had a huge impact on European
routes, and although some corporate travellers have started using the no-frills
carriers, clients booking more complex itineraries will always go to an agent
for help.

“The business traveller is used to low-cost airlines. They
are happy for their companies to pay for business-class tickets but they are
first in the queue when it comes to cheaper tickets. Customers will come to you
for the more complex itineraries. You should concentrate on these.”

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