Hays Travel founder John Hays told Independence Group members today that he gave qualified support to the move by leading cruise operator Complete Cruise Solution to cut commission.
Hays said although he had wished the cut had not happened, now that it was a reality it could be an opportunity for some members although some would be opposed to it.
“I had an excellent meeting with Giles Hawke (CCS sales director) shortly after the announcement,” he told today’s Hays Independence Group conference in Birmingham.
“I do not think 5% is enough but there is opportunity if you have got the capability. It’s down to expertise and having the right technology, the right deals and the right staff.”
Speaking later Hays said the cut was not something he had looked for but added: “Given the fact it happened and it’s not going to be reversed than I really think the commission cut might overall turn out to be a good thing for Hays Travel.”
However, he acknowledged that not all members would see it that way and said many would have to look to dynamic package more cruise to make money from the sector.
Hays has developed a cruise section on its travel agency selling platform and is about to launch new cruise insurance that will protect members in the event a component of a dynamically packaged cruise sale goes wrong.
A number of Hays agents, while saying they were not planning to focus on CCS following the commission cut, appeared to be quite pleased with the way things have worked out during this week’s 2012 programme launches for P&O Cruises and Cunard.
Gary Wardrope, owner of Get Cruising, said he had found he was able to compete with other larger retailers when customers came into the store with quotes from them.
“The last few days we have gone toe to toe with Reader Offers and while 5% is relatively poor it’s relatively easy to do – I consider a P&O [Cruises] booking to be a commodity now.”
Other agents agreed that the volume of product CCS has out of Southampton made it an easy sell.
Another agent said: “We sell a lot of CCS and when they said they were cutting commission I gave up having dialogue with them.
“This is the week they have gone on sale and I have to say I have not discounted a single penny. How it has gone I will not know until the end of April but I have to say in the first few days I’m quite happy.
“What is all depends on is everybody sticking to not discounting. We have done test calls and at the moment it seems to me everybody is sticking by the rules.”