CONNECT Car Rental is trying to persuade agents to accept management fee proposals and ditch the traditional commission-based payments.
The car-hire company, which has increased its sales through preferred supplier deals with airlines like EasyJet and Debonair, will encourage agents to seek fee-style arrangements, breaking away from traditional commission-based payments.
Connect managing director Adrian Duthrie said: “In business, the published price of any product is not the real price. Agents could get a car from me for £30 a day and then sell it to a customer for £50 a day, netting the agent a profit of £20. That doesn’t bother me and it’s a lot more than they would get on commission.
“Connect wants to establish bespoke deals with agents depending on how much they sell and in what destinations. We will talk to them about their business profile and go from there,” he added.
Connect receives 15% of its business through the trade but wants to boost its turnover by increasing its dealings with agents next year.
“We see ourselves as attractive to anyone in the trade because we are flexible and can respond well to what the consumer wants,” Duthrie said. “There are more and more options out there for the consumer so you have to move accordingly.
“It’s not up to me to tell agents how to run their businesses but I think management fees would benefit both Connect and them,” he added.
Connect currently sells 85% direct with the help of preferred supplier deals with EasyJet, AB Airlines, Ski Club of Great Britain, Euroscot Express, Gill Airways and Debonair.
Commission changes