New buying force warned to keep deals reasonable

The newly joined forces of Advantage, Global and Worldchoice is now a commercial buying power covering 1,800 agents, bringing a strength-in-numbers approach to negotiations with suppliers.

General feedback from the industry has been positive, following a formal announcement earlier this week. However, privately, many suppliers fear the new force could flex its combined muscle and demand higher payments without selling more holidays, or even freeze out certain operators completely.

In early talks with operators, Triton bosses have promised to boost sales of certain suppliers by exerting more control on members. The policy hinges on improved technology directing agents to the preferred deals, giving details of incentives, and showing sales targets.

TUI head of sales Jeanne Lally said: “The announcement on using technology to drive directional sales is positive. We are in a wait-and-see position. The ability of each consortium to deliver is always in question because they can’t force members to do anything.”

First Choice sales director Martin Froggatt said: “Who knows if they can do it? We’ve got a good relationship with the vast majority of independents, even though we don’t have a head-office relationship with Worldchoice. I’m happy with the arrangements we’ve got in place, and as far as I’m concerned, these will continue. We deal with some agents on an individual basis because they deliver the bookings.”

Cosmos sales director Andy Washington said the operator is keen to be involved with Triton, but is unsure how volumes could be increased unless certain operators are ditched. “Directional selling means they are going to have to be more selective. Agents won’t be able to increase everyone’s business, so somebody will have to suffer.”

Some observers suggest Triton can only succeed if retailers who make individual deals are booted out. “If certain operators continue to pick off members, the deal is as good as dead,” said one source.

Meanwhile, Libra Holidays sales director Paul Riches said the alliance is an opportunity to weed out the weakest consortia members.

“I’d like to see some commercial criteria for membership. The groups should be saying unless members do a certain amount of business for preferred suppliers they can’t stay in. The effectiveness of the agent network has to be looked at.”

ABTA president Martin Wellings warned Triton has to operate reasonably if it is to succeed. “If we can ensure the increased muscle is used wisely, there will be benefits for all. Triton should ensure fair trading practices between operators and agents rather then trying to push commissions up to an uneconomic level,” he said.