MIDCONSORT has threatened to derack First Choice after
the operator enquired about slashing charter
commissions.
Chief executive Charles Eftichiou warned of a
“consortia-wide” boycott of First Choice if it pushes
through plans to cut seat-only payments. Operators currently pay up
to 15% for flight-only.
Under the proposal, only 20% of Midconsort’s members would
retain the existing levels of commission because of their high
volume of First Choice product.
Eftichiou refused to reveal the level of sale needed to retain
existing commission levels. “We are prepared to derack First
Choice,” he said. “We can’t have operators using
agents as free distribution for their phone number.”
A First Choice spokesperson said: “We have had a
discussion with Midconsort but we have not had a
response.”
Meanwhile, Holidaybrokers founder Steve Endacott claimed major
operators are considering cutting commission on late holidays sold
via third-party agents.
“Products suitable for the web have quickly seen
commission eroded,” he said. “Once operators have
reduced commissions on charter seat-only sales the next product
will be late availability. It’s the one thing operators lose
money on.”
Advantage head of commercial Julia Lo Bue Said said no
approaches by the big four had been made on commission.
“Obviously we are opposed to it,” she said.
Cosmos commercial director Stuart Jackson added: “If you
are getting diminishing returns you have to look at the business
costs on both sides of the fence.”
TUI UK commercial director Derek Jones denied the operator had
any plans to cut commission.