Accommodation-only supplier Med Hotels has dropped its principal status blaming agents for being too “price-driven”.
Med Hotels has seen a drop in bookings from the vast majority of agents since it adopted principal status in June last year.
Although overall bookings have increasedyear on year, this has been fuelled by a small number of agents.
Med Hotels commercial director Carl Burrows said: “We absorbed most of the cost of being principalbut, inevitably, some holidays were a few pounds more expensive.
“The trade has voted with its bookings and shown that price is the overwhelming factor. We cannot rely on support from a very small number of agencies.”
He also blamed XMLfeeds for returning searches based on price without distinguishing between principal and agent status.
The announcement follows Med Hotels’ decision to pay out £400 to settle a dispute with Global Travel Lounge managing director Peter Buckell.
Buckell had initiated a county court case to win compensation for his clients, who he claims were given the wrong accommodation in Corfu.
On arrival at the airport, Buckell’s customers were told they would be taken to ahotel in Kavos, rather than Sidari where they had booked and arranged to meet friends.
Buckell’s clients have accepted an offer from Med Hotels to refund £400 of the £1,100 holiday.
A Med Hotels spokesman confirmed the offer of £400 had been made. He said: “We werenot acting as principal at the time so the case has nothing to do with that issue.”
The bedbank will continue to provide indemnity coverage following the return to agent status on July 21.
Are agents to blame? Do you book on price alone?
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