When did you last sell a cross-Channel ticket? A return ferry crossing from Holyhead to Dublin? Or any other ferry booking? The chances are you can’t remember, because despite the lure of double-digit commission, agents are just not interested in selling ferries.
The problem is the cost of tickets, which has been in freefall for the past couple of years as ferry operators have responded to overcapacity and competition from low-cost airlines. With one-way prices on the Channel from £49 this summer, and to Ireland from £69, most agents don’t think the reward is worth the bother.
SeaFrance managing director Robin Wilkins said: “We pay 10% commission but few agents sell us. Technology has made it easy for clients to book direct. Agents aren’t needed.”
Brittany Ferries sales and marketing manager Richard Price said: “Port-to-port sales through the trade are falling, partly because more people are booking direct but also because agents don’t think it’s worth promoting ferries. But if they are selling an overnight crossing, our cabins start at £40 one way and go up to £140. That’s £280 return, so earnings can be significant.”
Irish Ferries UK passenger manager Daragh O’Reilly said: “It’s not about the base ticket price but all of the extras.
A return crossing at the end of November for two adults and two children travelling with a car on Dublin Swift, Club Class both ways, would have cost £293 online in October. Based on Irish Ferries’ 5% commission, that is worth nearly £15.
So will agents bother to sell ferries at all in a couple of years? DFDS Seaways UK sales manager Andrew Crowe believes they will, but not if it’s just transportation.
He said: “When it comes to selling ferry-based holidays and minicruises to Scandinavia and Northern Europe, agents are very relevant, and they are good at adding extras such as prebooked meals and upgraded cabins, which increases the value of the product.”
With fares at their lowest for many years, operators are also taking a hard look at their future. Last year, P&O axed its services from Portsmouth to France, and slimmed down its Dover-Calais operation to cut costs. There was talk of a £3 billion bid for the group by Dubai Ports World as Travel Weekly went to press.
This summer, DFDS axed its Harwich-Cuxhaven route, which was suffering because it relied too much on point-to-point business rather than holiday traffic, while Irish Ferries is seeking voluntary redundancies from its entire sea-going crew.
If they accept, they could be hired back as outsourced labour on lower wages, although unions are disputing this strategy. If they don’t, new contactracts will aim to cut costs.
O’Reilly said: “We have to reduce costs, to bring them into line with the competition. The no-frills carriers are our biggest threat and we are trying to address that issue.”
Sea Containers, meanwhile, has decided to axe the Dover-Calais fast-ferry service operated by Hoverspeed after losing $17.7 million in the six months to June 30. The company said it would result in “significant” redundancies.
But P&O head of sales Ray Brunton said: “We carried 2.3 million cars and 13 million passengers last year. Demand is there. Those who want to be part of this business are having to rethink the economics.”
