RCI Travel has stopped selling Freedom Flights because the operator is cutting commission to 10%.
The Cendant-owned holiday timeshare company has sold Freedom Flights to clients for the past two years but will now use alternatives, said commercial director UK travel Martin Andrew.
RCI Travel is one of Freedom Flights’ top five customers.
“We had an agreement with them and they are not honouring it,” said Andrew.
“We are not ruling out working with Freedom Flights again, but the company must be prepared to offer the commercial terms we agreed.”
Freedom Flights will reduce agent commission from its current average of 14% to a blanket 10% from April 3, in line with UK seat-only rivals including Thomas Cook and Thomson (Travel Weekly March 10).
Freedom Flights managing director Paul Moss said most agents understand the commercial reasons behind the decision.
He said Freedom Flights had not seen any fall in sales since the announcement, but a few agents had been “very, very disappointed”.
“RCI has been a valuable customer of Freedom Flights and it is with great regret we are unable to continue that relationship,” Moss said.
Meanwhile, Avro managing director Michael Vinales has cut commissions to most agency partners in a bid to “stay competitive”.
Vinales declined to give details however until now, Avro has paid an average 13%-14% commmissions to agents.
Jacobs Media is honoured to be the recipient of the 2020 Queen's Award for Enterprise.
The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.