GOING Places is demanding operators increase their commission payments from 15% to 18% and provide across-the-board credit facilities to all its expanded network of shops.
Operators which refuse face having their current contracts terminated immediately.
Going Places is currently holding meetings with suppliers and renegotiating contracts on a group basis on behalf of its own 704-strong chain; sister agency Travelworld’s 119 branches; and the 350 Advantage agents which have formed a franchise partnership with Going Places’ parent Airtours.
The draconian new rules are in return for a focused sales strategy throughout all the 1,173 shops.
The increased commission demands and new credit terms are set to give small operators a huge cash-flow problem.
Typically, many operators allow Going Places to pay a deposit within eight weeks of booking and then the balance of the holiday eight weeks before departure. But many deal with Travelworld and Advantage agents on a cash basis and receive the deposit and balance straight after it has been paid to the agent.
Now Going Places is saying its shops will not pay any deposit to the operator for holidays booked and will not hand over any monies until eight weeks before the holidays depart.
One specialist operator said:”This will be terrible because it cuts off the cash coming in.
“What leaves a bad taste is that we already have a contract with Going Places and it just wants to rip it up.
“There’s no negotiation. It’s take it or cheerio. We’ve been given a day to make up our mind.
“There’s no guarantee or promise of extra business. I already deal with all the shops because I have separate relationships with Going Places, Travelworld and Advantage, so I’m having to pay substantially more for a bit of ‘focused’ selling.
“Alot of operators are going to be kicked out of Going Places and the drop in business will mean they will have to lay off staff.”
Going Places deputy managing director Paul Evans refused to comment on thenegotiations.