AIRTOURS has admitted a number of agents who voted in favour of the franchise and Advantage alliance will decide not to go ahead with the deal.
UK Leisure Group director of development and distribution Tony Bennett declined to say how many agents out of the 66% who voted yes to the alliance he expected to do a U-turn.
“The next two weeks is the crucial period but I would not expect that many to sign up by the January 15 deadline,” said Bennett. “Some agents who kept an open mind and voted yes will have changed their minds. We are still in learning territory. Members have the prospectus and we continue to listen to what they have to say.”
He said a second phase of recruitment would kick in after the deadline. Those who sign before January 15 will only have to pay ú1 for a share in the business, with those joining after that date having to stump up ú3,000.
The prospectus sent to Advantage agents just before Christmas reveals that the proposals will only become effective if participating members have an aggregate annual turnover of ú135m for inclusive tour products. Bennett said he was confident this target would be hit even though members are dwindling.
The prospectus also outlines some of UKLG’s financial input which include ú1m for its 15% share in the new company and a ú2.25m loan for start-up costs, marketing and the cost of erecting shop fascias.
Bennett said UKLG would also be ploughing several million into setting up the company’s Shared Service Centre which will enable joint negotiations to be conducted with operators. “The biggest cost will be raising the base commission rate from 10% to 13%,” said Bennett.