Agents have warned tour operators their sales will be
dramatically hit if they slash commission.
A poll of 300 agents, carried out by technology company Amadeus,
has revealed three-quarters (76%) would not think twice about
switch-selling en masse away from an operator that slashed
commission, while seven out of 10 said they would switch-sell
towards operators with agent-friendly commission structures.
A total of 81% of agents questioned in the survey believed tour
operators underestimated travel agents’ power to influence
customers’ purchasing behaviour.
The findings are a stark warning to operators which are cutting
commission, including First Choice and TUI. First Choice is cutting
consortia payments to 10%, while Thomson is refusing to pay
overrides to under-performing members.
One travel agent polled said: “I don’t feel guilty about
switch-selling away from the worst offending operators that are
reducing commissions. It’s a matter of survival. I have to
consider what payments I earn from the operator.”
Midconsort chief executive Charles Eftichiou was pleased with
the survey’s findings.
“It’s the only way we can win the commission battle and
ensure we are not downtrodden by the big guys,” said Eftichiou.
He said sales for First Choice have nosedived since the operator
announced it was slashing commission. Eftichiou’s call to
members to de-rack the operator has led to dramatic increases for
rival operators. Eftichiou said Thomas Cook’s sales are up
66%, Thomson sales are up more than 55%, while Cosmos and Airtours
have also seen sales increase.