THE Independent Travel Agents Alliance has contacted
the Office of Fair Trading after continuing reports from members of operators
undercutting agents’ prices online.
Worldchoice chairman Colin Heal discussed the issue –
known as ‘margin squeeze’ – after ITAA members said they still struggled to
compete with operators’ online prices.
ITAA member Midconsort has already claimed operators
are breaching a gentleman’s agreement not to undercut agents’ prices by more
than 5% (Travel Weekly February 23).
In some cases it is claimed operators have discounted
prices online by 10%-20%, effectively the cost or more than the agents’
commission.
Heal said the OFT will investigate cases where
operators discount more than an agent’s commission level.
He is already looking at two
cases and urged agents to report any instances.