MIDCONSORT Elite is considering cutting the number of suppliers it deals with as part of a major shake-up of how the consortium is run.
Chief executive Charles Eftichiou has vowed to re-evaluate the effectiveness of the traditional consortium model at the next annual general meeting on October 19.
The consortium now has 100 members and 120 suppliers.
Eftichiou said: “There is no doubt we need to slim down the number of suppliers we deal with. We have to face reality – our volumes cannot support that many suppliers.”
The consortium may consider individual commission deals for agents through head office that are tailored to the agent’s individual sales volumes, particularly as some members continue to “simply sponge off the consortium to get the deals.”
This would improve the consortium’s Targets Worth Chasing scheme, which incentivises agents to hit targets to get free membership.
He added: “Rather than kick agents out we may be able to identify those who are not bothered, or ‘individualise’ commissions as part of a structured plan. The days of the social club mentality, where operators have money to throw around, have gone.”
Eftichiou is also keen to cut down bureaucracy and the number of decision makers so the consortium can react faster. He admitted this could mean less consultation with members on certain proposals.
“You can overplay the democracy card,” he said. “I am looking very hard at whether the whole traditional consortium model is sustainable in today’s business world. My honest opinion is that it isn’t.”
He ruled out switching to a Global Travel Group-style franchise system.