Travel agents can now set their own commission rates with a bed bank that has recently adopted principal status.
Destinations of the World head of sales – Europe Paul Davis said commission rates would be capped at 25% and he expects most agents to set their commission levels at 12% to 15%.
He believes the pricing policy will prove more popular with agents than those of many rival bed banks that often give the trade net prices, to which agents are then later required to factor in their own mark-ups.
Davis said: “It can be critical for the high-street agents; if they have a customer standing in front of them and they’re looking at a net rate, then it’s very difficult to say this hotel will be £50 but we’ll be adding in our own charge making it £60.”
He added the bed bank currently has around 11,000 properties contracted, although it has steered clear of the Mediterranean beach market.
Instead it specialises in European cities, the Middle East, the Far East, the Indian Ocean and Australasia.
Davis said although the company has been in business globally for the last 15 years and running a UK operation for the last three years, the bed bank is now actively focusing on the UK trade.
He believes that agents will appreciate the bed bank for not having a direct-sale distribution channel as well as the fact it took up principal status about a month ago.
He said: “It was the tour operators and bed banks we sold through but we’ve switched to travel agents now and we’ve really opened our doors to the UK trade.”
Davis said the operator has already signed up a commercial deal with the Travel Trust Association, is awaiting an answer from Worldchoice and is currently holding talks with Advantage.