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BA defends new fares structure

BRITISH Airways general manager business sales Ian
Heywood has hit back at agents who have complained there is nothing for the
trade in its new fares structure.

Heywood said the low-cost fares structure – launched
on to computer reservations systems last Friday – was simpler to use, the
Saturday night stay rule has been ditched and the cheaper fares will make it
easier for agents to justify charging a booking fee.

He countered the negative comments by saying agents
weren’t being forced to sell BA.

“If some agents don’t want to work with us, that’s
fine. But they shouldn’t moan about us, they should just get on with their
businesses,” he said.

Heywood insisted the new fares structure gives agents
a wider choice of cheaper fares with which to compete with the low-cost
carriers, the majority of whom pay no remuneration to the trade.

“There’s not always something in what we do for
agents, but there is in this package.

“It’s simpler to use and it will be easier for agents
to justify fees to their customers. I don’t know what else I can do – the vast
majority of feedback I’ve had has been positive,” said Heywood.

But while some agents have welcomed BA’s move to bring
itself in-line with Go, EasyJet, Ryanair, Buzz and Bmibaby, others have
questioned their motives, claiming there is “absolutely nothing” in the new
package for them.

Worldchoice chairman Colin Heal conceded the benefits
to agents were negligible. “Lower fares are always a good thing, but they don’t
really deal with the problems that are facing agents at the moment,” he said.

Haslemere Travel managing director Andrew Brownrigg
said the fares structure was aimed at the public not the trade.

“It’s all very well to come up with competitive fares,
but what other incentives are there?” he asked.

“BA backed down over the issue of Agency Debit Memos,
but the fact is it’s still reducing commission. This is all about getting bums
on seats, it’s nothing to do with rebuilding its image with the trade. BA has
lost the trust of the trade and it’s all talk.”

Paul Chandler, from The Travel Club of Upminster,
said: “BA is just interested in getting the big contracts from the business
houses. But there are 2,000 smaller independent agents and that’s a lot of
business.”

Heywood said UK agents should compare their lot to
that of their US counterparts.

“I’m not saying agents should be grateful for what
they’ve got, but the US is a classic example. US carriers went to zero
commission overnight.

“We gave the trade 15 months to introduce Fresh
Approach, and five for the second phase,” he said.

David Whittaker, GBTA board member and managing
director of The Travel Company, was surprised at the negative responses.

“The GBTA is delighted. I can
understand that people won’t see this as being earth-shattering, and does this
mean we can make more money? Probably not. But it will mean we can offer a
broader range of fares,” he said.

 

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