A steadfast refusal by Ryanair to allow retailers to charge service fees is the final straw for many agents.
Retailers have put up with commission cuts from 9%, to 7.5%, and now to 5%; have stomached increasing direct-sell activity with telephone sales and newspaper promotions; and are now coping with a huge sales push on ryanair.com. This is on top of a Ryanair reservation system which regularly rejects bookings agents consider to be accepted.
But the ban on service fees – backed up with threats of court action – has been met with intense anger and has led to agents saying ‘enough, is enough’.
Retailers have stopped selling the airline and others are switch-selling to Ryanair’s competitors, including rival Aer Lingus.
Ironically, Ryanair is the only budget airline offering commission, but finds itself the agents’ most disliked low-cost airline due to its service fee stance.
Mandy Lipscombe, a co-director of Lipscombe Travel in Southend, has now stopped selling Ryanair.
She summed up agents’ feelings, saying: “I’m not making any money on selling at 7.5%, let alone 5%, not without a service fee. We have got to make a stand against them.”
She has also stopped selling Go and EasyJet as the money made on tickets does not cover costs.
Midconsort chief executive Sue Foxall is advising her members to stop selling Ryanair.
She said:”They are not working with agents in any realistic shape or form so why should we support them? Ryanair says no to service fees and has cut commission, so it might as well say we are not working with agents.”
Aldershot-based Wellington Travel owner Di Baker advocates switch-selling away from the airline.
She said: “I have switched to Aer Lingus, British Midland and British Airways. Why does Ryanair take the attitude of ruining its distribution network?”
Baker charges customers a non-negotiable £10 fee for sales under £100. If customers want a Ryanair ticket, she tries to switch sell them to other carriers rather than face court action from Ryanair.
Advantage commercial director Neil Armorgie said it was unfair for Ryanair to tell agents how to run their business.
“We recommend members look at the cost of sale, to see if it is a worthwhile exercise if there is such a small return on the sale,” he said.
Multiples Lunn Poly and Thomas Cook stopped selling Ryanair three years ago, along with Bath Travel. Joint managing director Stephen Bath, who is also the chairman of ABTA’s Travel Agents’ Council, said he is waiting for the first Ryanair UK court case over service fees.
“It is outrageous. I look forward to the first test case,” said Bath. “If Ryanair is successful does that mean service fees are outlawed across the board?”
ABTA head of legal affairs Riccardo Nardi said it would depend on the type of contract Ryanair took action on if a court case could set a precedent on fees.
He did say that ABTA would support any agent targeted by Ryanair. “There may be a case for a counter claim if an agent is unable to cover their costs with just commission. This may be anti-competitive.”
Ryanair sales and marketing director Tim Jeans said the airline had no wish to start legal action with agents.
But added: “If agents break a contract there may come a time when we are forced to act. Our stance on fees is well known and we hope it is respected.”
Jeans claimed agencies should continue to sell the airline as it brings in incremental business for agents in the form of car hire, insurance and hotel bookings. “We don’t pretend agents will get rich on flight onlys,” he added.
Agents have said the chance of extras in no way cover their costs and, if Ryanair persists with its stubborn position on fees, they will rip up their contracts.
Paul Norris outlines the action Ryanair took against an agent who introduced service fees in the Republic of Ireland in 1997
RYANAIR’s confidence in upholding a UKban on service fees stems from winning a court case in Ireland three years ago.
Dun Laoghaire Travel, near Dublin, introduced a I£5 (£3.90) on sales under I£60 (£46.90) to customers who wanted to book the cheapest Ryanair tickets.
The airline quickly found out the extra charge was being levied and attempted to take away the agent’s International Air Transport Association sales plates. The plates allow an agent to sell an airline’s ticket.
Ryanair sales and marketing director Tim Jeans said: “The agent sought an injunction on us as we tried to pull the plates. However, the court upheld our action and we stopped them.”
Jeans said no other agent in Ireland had tried to implement fees since the case.
The action led to Ryanair tightening up its UK and Irish contracts with agents to bar the addition of extra charges.
Dun Laoghaire Travel sales and marketing manager Susan Evans said:”We, like a lot of agents in Ireland, reluctantly still sell Ryanair because we have to.”
Ryanair has yet to turn to the courts in the UK over service fees. But Jeans insisted that if UK agents did impose fees, the airline would have no hesitation in repeating its Irish action.