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New fears hit TIPTO launch

THE TRULY Independent Professional Travel Organisation has come under fire from agents and operators after a high-profile launch attended by over 100 operators in London.


The new group, which is due to be launched on August 1, received widespread support from those who attended its inaugural meeting, where plans were announced to carry out joint marketing activities with 1,000 selected agents.


But some operators criticised TIPTO for failing to include group-wide commission rates as part of its offering to independent agents.


“We would like to see a full agreement for marketing and sales, including override commissions, to tie travel agents and tour operator members more closely together,” said John Bennett, deputy chairman of the Association of Independent Tour Operators and managing director of OspreyHolidays.


Others questioned why so many had been invited to the launch when only 20 operators will be hand picked by founder Gary David, managing director of Cadogan Holidays.


The operators will have to contribute £25,000 apiece to a central marketing fund of £500,000. Meanwhile, Advantage Travel Centres and Midconsort said their relationship with TIPTO could be affected if its membership included operators that their organisations had no commercial agreements with.


Advantage commercial director Neil Armorgie said: “Our relationship with TIPTO depends on whether they are operators with whom we have a commercial relationship.”


ARTAC chairman Colin Heal said he was open-minded about TIPTO, but did not attend the meeting and said he was yet to be convinced of the benefit to members.


But David defended the organisation and pointed out that TIPTO had already received 24 membership applications as Travel Weekly went to press.


“The market has changed and this is a way forward,” he said.


“To ask for guaranteed racking space would be like asking agents to directionally sell. We will get racked by choice not by force.”


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