BRITISHAirways head of UK and Ireland sales Tiffany Hall has admitted the carrier cannot afford to have a confrontational relationship with agents in an increasingly competitive market.
She told delegates BA must improve its relationship with the trade as it still provides 85% of the airline’s sales.
Hall said:”We have a very difficult situation with BA and these are tough times. People are wanting more value for money.
“Businesses are more cost conscious, corporates are getting the price down and all this is having a significant effect on BA. We cannot afford to have a confrontational relationship with agents.”
Overcapacity, too many low-yield customers and high fuel prices contributed to BA’s pre-tax profits plummeting from £385m to £240m in the six months to September 30.
Hall pledged BA would work closely with the trade to devise a new payment scheme following the scrapping of previous agreements.
She said: “We will involve agents in the consultation process. There will be one to ones with the big agents and forums with the next level.”
BA is to propose three potential models for payment after its Interim Bonus Agreement ends in March (see front page). She also said BA will unveil new products to help the relationship with the trade. These include a portfolio of products, which allow agents to sell to corporate clients, and new on-board products.
BA is reviewing its fares policy to see if prices can be reduced to boost bookings.
Advantage Travel Centres managing director Ron Muir was critical of BA’s previous dealings with agents. “I suggest BA did not give enough attention to agency people when tough trading was on the horizon. This was not smart as it then took its commission stance. “If BA does not support the trade, the rest of its recovery will not work.”