Med Hotels could review commercial terms with agents if they decide not to support the company now it has adopted principal status.
The accommodation-only supplier plans to educate agents through roadshows or other events after becoming a fully fledged principal this week, following calls from agents to make the switch.
But group trade director Carl Burrows admitted it could be frustrating short-term if agents continue to offer deals purely based on price, selling competitors if cheaper rather than taking into account financial protection.
He said: “This is probably going to be a frustration. We have heavily invested money and effort into delivering this for agents. I am expecting some loyalty – agents have been demanding this change.”
The company aims to absorb as much of the cost as possible and has yet to increase any prices.
Burrows hinted commercial terms could change if the support of agents was not reflected in sales.
He said: “We would expect growth in our sales or for agents to switch off those competitors that have not taken on principal status. I am putting pressure on key agents and each commercial deal will be on its own merits.”
Events are being planned to ensure agents understand the difference of booking with a supplier with principal status.
“Each agent is price-driven and perhaps not all those at the cutting edge have information on what it means to be a principal. We have our house in order and want to push the point.”
He fended off criticism about the time taken to adopt principal status. “We have had to resign every hotel contract and reshape our entire business.”
Meanwhile, Med Hotels has added seven new long-haul destinations to its portfolio – Florida, Sri Lanka, the Maldives, Dubai, Cape Verde, Antigua and Barbados – that are all covered under its new principal status.
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