Triton – we must be united

Triton Travel Group agents must unite as a multiple if the super-consortium is to work.

The warning shot was fired at its inaugural conference in Tenerife by Triton directors and operators after PricewaterhouseCoopers’ research revealed only 56% of members are supporting preferred suppliers.

In turn, agents demanded more cohesion from Triton directors and warned they did not want to be “treated like schoolchildren”.

PwC performance improvement consulting director Alan Morris said 44% of a sample survey of Triton members were selling non-preferred operators. He warned Triton’s model was currently failing, with agents missing out on at least 15% commission, potentially 50% profit.

Triton has renegotiated 150 supplier contracts for Advantage, Worldchoice and Global Travel Group agents since its formation last September.

Morris said: “You have some way to go to get the model to work. Profitability comes from a mutual relationship – you support the suppliers who support you. Without that the whole thing disappears.”

Budgens retailer Jonathan James compared the travel sector with his own at the conference, saying: “I have to buy 95% of my product from Budgens. Unless I do that, Budgens’ buying power is weakened.”

He said member discipline is policed by fellow retailers and a Budgens retail council.

Suppliers immediately put pressure on Triton to kick members out if they don’t toe the company line.

Libra Holidays sales and marketing director Paul Riches said: “Membership should include criteria on commitment to the suppliers’ strategy. I’d call for a contract to deliver this and if not there are penalties.”

Cosmos Holidays has seen a drop of 40% in package sales since its Triton deal, although sales through Somewheretostay.com are up. Managing director Terry Williamson had expected extra Triton business following commission cuts by Thomson Holidays and First Choice. Cosmos has spent £500,000 on trade marketing support over the past four years. “I’m frustrated our efforts are not reaping results,” he said.

Mundi Color Holidays sales and marketing director Tony Maniscalco warned some suppliers would give Triton until the end of the year to get its house in order before going direct or reducing commissions.

The news comes the same week Hoseasons Holidays, a preferred supplier, has upped commission by 1% for May and labelled suppliers that cut commissions as “short sighted”.

Triton directors reacted to operator criticism with a pledge to get 80% of members backing preferred suppliers in two years. Director and Advantage managing director John McEwan said: “We are not going to get 100% but I’d expect that figure to increase to 75% by this time next year and would be disappointed if it was not 80% in two years’.”

Triton and Worldchoice chairman Colin Heal said: “There is a growing realisation among Worldchoice members they have to support preferred partners to succeed but we do not plan to throw people out.”

Agents suggested the group would have its work cut out.

Sandy Murray, proprietor of Advantage agency Sandy Travel, in Normanton, West Yorkshire, said: “The day I have to ring Advantage and ask if I can sell somebody is the day I walk. We’re independent, and have come together for the power, but we are not at school. We have to run our own businesses.”

Niall Douglas, owner of Full Circle Travel in Wallingford, Oxfordshire, said: “We are supposed to be independent, so why are we being dictated to?”

Already up to 20 disillusioned Triton agents have approached Freedom Travel Group and up to 10 have contacted Midconsort Elite with a view to jumping ship.