It wasn’t much of a surprise to hear that Ryanair is slashing commission to 5%. Agents are getting used to hearing bad news from suppliers.
The low-cost carrier made the announcement at the same time as it released its on-line sales figures for the month of February. Agents will be no doubt be pleased to hear that 20% of its bookings were done via the Internet. Some of those fares were not even available to agents.
The carrier claims its 5% level matches or exceeds Europe’s other major airlines such as Lufthansa and SAS. The only difference being, of course, that such airlines do not kick up a fuss if agents charge service fees to make up the shortfall in their earnings.
Ryanair is now threatening those agents which impose service fees on the back of the 5%commission that it will withdraw commission all together.
Perhaps other agents will follow the lead Thomas Cook took when the carrier last slashed commission and decide it is no longer worth selling the airline’s products.
It is naive for suppliers to expect a travel agent to sell a low-value product and not get rewarded for it. Agents do not make any money out of selling the carrier’sproduct at 7.5%, let alone 5%.
Travel agents are not here for love. Their income is diminishing at a time when costs are increasing.
As a business, surely Ryanair can understand that.
Liz Bird – deputy editor