AGENTS who have not yet prepared for the introduction of service fees run a serious risk of going out of business, according to Carlson Wagonlit Travel.
The warning comes in a document written by the business travel agency, outlining details of British Airways’ payment restructure.
It warns:”The onus will be on agents to deliver true value to the client in return for fees. Some agents moving late to these new financial models will find this difficult to achieve. It is likely that some of these less sophisticated travel agencies will not survive the commission restructure.”
Carlson Wagonlit vice-president UKJim Tweedie said:”The document has been sent out to staff and clients and we are advising all of our clients that it is likely they will be affected by these changes BAis proposing.
“Agents such as ourselves who have renegotiated our contracts with our corporate clients where we are paid directly by them are clearly in a better position. The smaller agents who have continued to operate on a commission basis will have to radically reassess how they do business. Over the next year, there will be a further reduction in commission as other airlines follow suit,” he added.
“The income is not going to be there for smaller agents.”