Simpson Travel has slashed commission for the summer after deeming it “not financially feasible” to continue paying 12%.
The luxury operator has cut agents’ commission to 5% on holidays to Greece, Turkey and Corsica for June to September, but will keep paying 12% on packages outside that period.
Founder Graham Simpson said he had decided to focus on selling direct. “The combined effect of the current economic conditions, the squeezing of margins across the industry and our more successful online direct marketing has forced us to review our trading with agents,” he said.
“We have reviewed our commission structure and settled on the amount we could afford to pay.”
He added: “We appreciate some will sell other operators for better commission rates.”