News

Bath Travel launches management fee plan



Journal: TWUKSection:
Title: Issue Date: 02/04/01
Author: Page Number: 24
Copyright: Other





Future predictions

Bath Travel launches management fee plan

Report by LYDIA WILSON

its clients. Business travel management division sales development manager Brian Forsyth played down the idea that the change, which will see commission replaced with small fixed sector payments, would drive companies to book direct with airlines.

“There is nothing to stop companies booking direct with an airline, but it depends whether they have the staff, time and knowledge to do this,” he said. “What about cancelled bookings, refunds and itinerary changes?

“When you look at the benefits the travel agent can bring in terms of purchasing power, expertise and time and money saved, the Internet is likely to end up a lot more expensive.”

Forsyth also said that those clients who leave Bath Travel to find an agent still operating on a commission-only basis will be let down.

“You might save a little money but what kind of service would you get from an agent operating on wafer-thin margins?” he asked.

“It is almost certain that in the forseeable future, the majority of airlines will go to zero commission.”

The new client agreements will be verbal, not written, which Bath Travel maintains will help build a longer-term client relationships.

BATHTravel has unveiled its response to British Airways’ zero commission policy, which takes effect from this week.

The company is following American Express’ lead and launching a management fee set-up which charges customers to use different services but returns all commission earned through other airlines back to its clients. Business travel management division sales development manager Brian Forsyth played down the idea that the change, which will see commission replaced with small fixed sector payments, would drive companies to book direct with airlines.

“There is nothing to stop companies booking direct with an airline, but it depends whether they have the staff, time and knowledge to do this,” he said. “What about cancelled bookings, refunds and itinerary changes?

“When you look at the benefits the travel agent can bring in terms of purchasing power, expertise and time and money saved, the Internet is likely to end up a lot more expensive.”

Forsyth also said that those clients who leave Bath Travel to find an agent still operating on a commission-only basis will be let down.

“You might save a little money but what kind of service would you get from an agent operating on wafer-thin margins?” he asked.

“It is almost certain that in the forseeable future, the majority of airlines will go to zero commission.”

The new client agreements will be verbal, not written, which Bath Travel maintains will help build a longer-term client relationships.



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