ADVANTAGE Travel Centres is to change the financial structure of its alliance with Airtours, in a bid to increase the operator’s sales and boost membership of the franchise.
The consortium is also reviewing the £3,000 joining fee.
Currently, advertising and administration is financed by taking a percentage of commission which flows straight into the franchise’s central funds, bypassing agents.
It replaced a plan when the franchise was first launched of charging agents 0.5% of their annual turnover to pay for marketing and running costs.
But Advantage is set to return to this original system after sources said agents were becoming disillusioned at not receiving the full commission.
By receiving the full rate, agents will also more actively push preferred operators.
Advantage commercial director Neil Armorgie admitted that offering agents the full commission rates could improve sales.
“Agents respond to commission rates and we would anticipate increased sales if they receive the full negotiated amount,” he said. “We are working through a number of different financial models. Nothing is yet finalised.”
Armorgie added: “We originally asked agents to pay a percentage of their turnover before we knew we would get increased commission.”
He said under the new proposals, agents’ turnover will only be based on their inclusive charter business.
Agents will have the choice to remain on the existing system if it benefits their business, added Armorgie.
It is believed the gap in commission rates will encourage non-franchised agents to join.
One non-franchised member said: “The gap in rates will more than offset the payment of a percentage of turnover. I believe many will join the franchise but this will weaken the non-franchised part of the consortium.”