Travel agent and tour operator group Aito has recommended operators increase commission by 0.5% from next year to offset the abolition of payment card charges.
Under the EU’s Payment Services Directive 2, which is due to come in in January, agents will no longer be able to pass on card fees meaning they could be left out of pocket.
However, Aito, which has been discussing the implications of the directive since setting up a working group earlier this year, wants to see operators offset this shortfall for agents.
Sam Clark of Experience Travel Group and an Aito council member and Gemma Antrobus, of Haslemere Travel and Aito agents panel chairman, have now proposed the 0.5% solution.
They assessed average package tour prices and commission levels and devised a formula which could be applied by operators to bookings received via agents.
It was agreed that Aito would recommend that if their tour operator members applied the extra commission to bookings taken after the introduction of PSD2 this would have an approximate levelling effect between bookings made by card and other payment methods.
Clark said: “Having examined the implications of PSD2 this far in advance, Aito hopes to ensure that operators and agents are not plunged into a last-minute situation at the height of the selling season in January 2018, when the new legislation comes into force.
“Some Aito members have already written to their agent partners, advising them they will be applying the 0.5% initiative.
“Whether the tour operators increase their selling prices or not as a result of PSD2 is their choice completely, and this 0.5% extra commission is only a guidance figure for our members to work with.”
Antrobus added: “Both travel agent and tour operator members of the agents panel agreed that it was a fair and essential initiative to help Aito Specialist Travel Agents, who work on a fixed commission basis, to mitigate the impact of this new regulation to their bottom line.
“Even though 0.5% extra commission will not completely cover the shortfall experienced by agents, it will certainly meet the situation half way.
“This is a good demonstration of the collaborative partnership between Aito operators and agents.
“I’m delighted that Aito is leading the way by taking this action to support its specialist travel agency partners, and hope that many of our specialist operator partners will follow Aito’s recommendation.”