BUDGET regional carrier Flyglobespan has reintroduced trade commission payments – because travel agents were marking up prices to uncompetitive levels.
The predominantly Scottish carrier scrapped payments and replaced them with net prices in March. This allowed agents to add in their own margin at levels of anything up to 12%.
However, a spokesman claimed some agents had taken advantage and added the full commission on costly long-haul flights, heavily distorting the final customer price. He said: “It made it look like the net prices were high.”
As a result the carrier reintroduced commission payments on September 28. Its new commission has been set at 5% on European flights, while Canadian destinations will earn agents its highest commission of 10%, the same as before.
Payments for new destinations, the US and South Africa, will fluctuate between 7% and 10% depending on the season.
Flyglobespan business development director Bill Robson claimed the latest move was also in recognition of agency support.
Scottish Passenger Agents’ Association chairman Sandy Macpherson welcomed the move. “Flyglobespan needs and wants the support of the travel trade,” he added.
However, owner of Bryton Travel in Edinburgh Bryan Bath argued the carrier had only made the U-turn because it needed agent support to fuel its growth plans.
He added: “It has realised it needs the trade more than we need them. Over the last few years bad agents have gone out of business and only the good ones remain – the trade is once more worth doing business with.”