SPECIALIST operators are to seek deals with independent agents with the promise of higher commission in exchange for guaranteed racking and increased sales.
Plans have been drawn up by Cadogan Holidays managing director Gary David, who is looking to work with up to 700 agents.
A series of seminars with retailers will be held if the proposals receive support, said David.
The move comes as specialist operators report a drop in business through multiples.
“Because independent agents have no financial muscle or power they tend to get the lowest commission even though they do well for specialist operators,” said David. “I would like to see a band of about 15 operators, including car hire and cruise companies, providing these agents with higher commission, a marketing fund, in-store training and more educationals. In return, the agents would be expected to guarantee racking space for all participating operators.”
Mundi Color product development manager Tony Maniscalco said the plan had potential.
“Anything that builds closer links with independents has to be welcomed,” he said. “It is becoming more difficult to sell through the multiples.”
Amathus Holidays sales and marketing manager Cris Rees said the plan could act as an insurance policy.
“We have not yet seen a trend away from multiples but we need to be aware that directional selling is becoming more important,” he said.