BRITISH Airways is holding talks with travel agents to agree long-term commission deals so they can budget for any changes in payment levels from next March.
The airline has given into pressure from the trade which feared it would not know the airline’s commission plans until the spring – too late for them to budget for the changes. Introduced on September 1, the Interim Agency Bonus scheme comes to an end on March 31.
Guild of Business Travel Agents chairman Don Lunn said: “It is important the industry knows by the end of November precisely what is going to happen.
“Agents are now sorting out their budgets and we do not want to get into a situation where BA gives just a month’s notice that it is going to reduce our commission levels.
“There is no question that the current schemes which have been put into place are not in the best interest of 20% of agents who give BA80%of their business. The situation needs sorting out.
“I have asked GBTAmembers to come up with proposals which we will put to BA over the next few weeks,” he added.
Starting next week, BAgeneral manager commercial development Simon Parks-Smith will hold meetings with agents and trade associations, such as ABTA and the GBTA.The talks are expected to last six to eight weeks.
Parks-Smith said:”The UKsales team considers this its top priority.”
Agents are currently sifting through the European Commission’s ruling on BA’s agency agreements to see if there are any loopholes in the document.
P&OTravel managing director Tony Hughes said:”Our legal team is going through the document with a fine toothcomb. I would like to see a differential for travel management companies who do a lot of business with BA.
“At P&O Travel we have invested a lot of money in infrastructure to bring in passengers for BA and ensure our administration runs smoothly. That is of benefit to BAand we feel we should be rewarded accordingly.”