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Editor’s letter: Take a leaf out of Fred Olsen’s book

TWgroup editor Lucy HuxleyA travel agents’ conference wouldn’t be the same without a question on discounting and how smaller agents can compete against the big boys, and Ace’s UK Cruise Convention in Southampton last week didn’t disappoint.

But this time, instead of agents just whinging and suppliers merely paying lip-service, there appeared to be a genuine will to try to find a solution to the problem which, let’s face it, doesn’t benefit anyone but the consumer.

Even Ace chairman and Cunard president Peter Shanks said he felt there was a real desire to do something about it, after hearing Azamara Cruise Club president Larry Pimentel warn of the dangers of selling on price.

Julia Lo Bue-Said from Advantage went one step further, calling on the lines to get together with agents to find a way to reduce the escalating discounts. She said there must be a way to ensure every stakeholder in the chain gets a decent return. But how?

Well, maybe all the lines should take a leaf out of Fred Olsen’s book?

Known perhaps for being a bit old-fashioned and traditional, Fred Olsen has come up with an innovative remuneration model based on the average passengers pay per day, instead of sheer volume.

The system is apparently encouraging agents to upsell to meet their new targets. Maybe it’s a model that all the lines should consider adopting.

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