Hold your nerve agents told

AGENTS are being urged to stick to their switch-selling guns and resist short-term financial inducements offered by operators.

With the lates market about to start, retailers have told Travel Weekly both Thomson and First Choice are trying to woo independents with additional payments to sell excess stock. Both operators have denied offering such incentives.

Agents up and down the country are switch-selling away from both operators in retaliation for their commission cuts last year. Some claiming the amount of business they do with the two is down by as much as 75%.

Now, consortia bosses are telling independents – a valuable distribution channel in the lates market – to flex their muscles and register their disapproval of dwindling commissions.

Global Travel Group chief executive and Triton director Andrew Botterill said: “We are seeing financial incentives out there which are over and above what the operators said they were prepared to pay. The independent sector has got to look after itself.”

Advantage managing director John McEwan agreed, adding: “It’s very important members continue to support our preferred suppliers and not react to situations in the lates market.”

Worldchoice chairman and managing director Colin Heal urged agents to continue switch-selling and warned Thomas Cook and Airtours will be watching how agents react and could cut commissions too if they think agents can be bought off with short-term sweeteners.

Lets Go Travel managing director Simon Maunder said should Thomson or First Choice want to rebuild a partnership with the trade, they must learn to accept certain conditions.

He said: “I’m certainly happy to talk to anybody who has recently cut commissions, but it would only be on a long-term basis rather than just helping them out because they’ve got excess capacity to shift.”

Thomson commercial director Derek Jones admitted the operator still had stock to sell in the lates market but denied it was offering incentives to help clear its shelves.

First Choice is believed to be in a more difficult situation. The operator has this month cut summer capacity by 5% and has announced it will launch a shop franchise operation that will increase its high street presence and its ability to drives sales in-house.

The operator currently has 302 shops, by far the smallest network of any of the big four.

However, First Choice managing director UK distribution John Wimbleton denied the operator was offering any extra cash. “Independents would love it to be true. I’m delighted to say it’s absolute nonsense,” he said.

On Holiday Group chief executive Steve Endacott warned how the industry acts during this crucial lates market could define its entire future.

He said: “This is a crucial moment in the industry. Do agents go for short-term gain or long-term survival?”