I was sad to see the recent deterioration in British Airways’ performance – I suppose the expression how the mighty have fallen springs to mind.
When our national airline succumbs to its current state, it does not bode well for any of us.
However, I can’t help feeling that BA has not helped itself.
I know from our tour operator side how at one time everyone, given the choice of flights, preferred to fly BA. That was in the days before the funny tail fins and the cost cutting and the deterioration in the cabin service. It is sad to report that it is now far easier to sell other carriers than it was even a few years ago. We receive regular reports that the spirit – and I don’t mean alcohol – on board BA flights is not what it used to be in the past.
That crisp British chic seems to have disappeared.
I wonder, as well, how the cut in commission has influenced BA’s sales. This is something that none of us will ever know. Something that BAwill never admit – that the 2% reduction in commission to agents has seriously affected its sales. Now, of course, that the performance kickbacks have been done away with for all but the most powerful agents in the market, the transformation is complete.
I used to look forward every month to receiving our sales figures from BA, and tried to improve them, so that we could look forward to a little commission bonus.
These figures are now meaningless, because there is no longer the incentive to improve.
If agents were not switch selling before then, they certainly will now.
Because of what I have described, it will be far easier to sell products other than those of the national carrier. We at Sunvil give BA in the region of ú500,000 every year.
It is not a lot of money for the national carrier, but if we are forced to look elsewhere, as many others will be forced to do, then will BA’s downward spiral just continue? The fact is that BA has distanced itself from all of us.
In a way it has become too big, and perhaps too arrogant, and this is very disheartening to a lot of us. We would like to feel the old pride we used to have for the flag carrier of this country. There is no doubt that BA has succeeded in alienating the travel agent.
A parallel can be drawn with what has happened with the market leader in the tour operating field, Thomson Holidays.
There was a time when the quality and stability which came from the market leader made it untouchable and all powerful.
Over the years, this has lead to an arrogance which again has affected the company’s standing in the retail travel sector. It is now very easy to switch sell away from Thomson because the market leader has allowed others to catch up. Merely to advertise the fact that you are the best is not enough when the retail trade can earn a lotmore from similar products.
Both BA and Thomson are taking a a risk.
They are both relying on the fact that their competitors will follow their lead. This may not happen and already we see that their dominant positions are being eroded.
If the alternative marketing avenues do not fill the gap, then they may both find that they will lose forever what has taken many years to build up.
It is sad to hear about BA’s profit problems. But by alienating the trade with its cost-cutting regime, I can’t help thinking theairline’s bosses brought it all on themselves