The Guild of Business Travel Agents chairman Don Lunn said it is too early to give an informed view on British Airways’ new commission structure until all the details have finally been thrashed out.
His comments follow BA’s decision to scrap its Interim Agency Bonus from April 1 and axe commissions from January 2001 (see table on page 5).
Lunn expects the airline to spell out its plans within six weeks and said: “We are still in the process of deciding the infrastructure of the scheme and the final details of it.
“We have been working closely with the airline and in principle we are both agreed that the airlines are not entitled to a free distribution system.
“There is a cost involved in that agents are entitled to a reasonable level of remuneration.
“We currently have only half of the equation in place. There is not a lot more that I can say at the moment.”
BAwill shortly begin talking to agents individually on how the new agreement for April 1 will be put in place, said Lunn.
“Once that has been done, the agency community will have a better idea how it should progress,” he said.
“At the moment, we are moving in the right direction. We are still talking to one another and we want to make it work.”
Going Places Business Travel general manager Adam White said: “Until part two of the proposals I am unable to give a considered view.
“At the moment, BA has given a broad outline, but until we get to the detail there seems to be a great deal more discussion going on between the GBTA and the airline.”
But White warned:”I do not want to see an erosion of commission. I do not want to see a discreet rise in costs to the customer.”
January 2000
Currently agents receive £14 through 7% commission rate; or £20 through the Interim Agency Bonus at 10% commission.
January 2001
Agents will not receive any commission but will get £10 through two £5 sector payments. Those agents with sales and marketing agreements will get an undisclosed extra amount from BA.
January 2000
Currently agents receive £140 through 7% commission rate; or £200 through IAB at 10% commission.
January 2001
Agents will not receive any commission from BA, but will get £30 for two £15 sector payments. Those with sales and marketing agreements will get an undisclosed extra amount from the airline.