Business travel agencies charging unsustainable service
fees are destabilising the industry, according to the trade’s
major consortia.
But the industry is divided over whether service fees should be
regulated to prevent aggressive sales tactics.
Advantage director of business travel Norman Gage raised the issue
ahead of the consortium’s annual conference in Sorrento this
weekend.
Gage expressed concern that a minority of UK agencies are charging
unsustainable service fees in a ploy to win clients from reputable
travel management companies before hiking up charges or going out
of business.
He said at least four Advantage members have contacted him with
reports of rivals charging £10 per transaction.
While there is no industry standard, both ABTA chairman Ian
Reynolds and Worldchoice business travel director Tim Giles
identified £15 as a ballpark, sustainable, transaction fee
level.
However, Guild of Travel Management Companies chairman Richard
Lovell is against a push for service fee standards warning
“that would come very close to collusion”.
Reynolds ruled out ABTA imposing recommended fee levels because it
would be anti-competitive and not within Newman Street’s
remit.