RYANAIR has barred agents from selling its latest round of cheap fares for eight new routes as it looks to push more of its business through the Internet.
The airline’s lowest deals will only be available through its Web site, and if agents want to sell the seats, they will be on average £10 more expensive.
Chief executive Michael O’Leary said the 60% of sales currently taken by agents will reduce to 40% as ryanair.com attracts an increasing number of visits.
“We will have less and less business with agents,” said O’Leary. He said agents did not offer the cheapest fares because they have to pay additional costs due to using global distribution systems.
ABTA aviation committee chairman Sandy MacPherson said: “Ryanair is not being fair. It cannot pick and chose who sells seats. The airline has told me they want to work with the trade, so this is disappointing.”
O’Leary urged retailers to seek out new ways of offering the best deals, such as using the Internet. “Agents are doomed if they do not offer low fares,” he said.
He also warned against agents resorting to service fees to make up for drops in sales or commission, saying that making customers pay additional charges will force more people down the direct-booking route.
O’Leary said: “Service fees are unfair and we are rigorously opposed to them. Agents cannot expect to get a double hit from us.”
He said he had no plans to cut agents’ 7.5% commission to save money because Ryanair will rely less on retailers.
The offers on the Web site range from £69-£129 return.
“We are not anti-trade, but are trying to bring some transparency to the business,” said sales and marketing director Tim Jeans.
Ryanair will regularly offer fares from as low as £6 plus taxes on its Web site, which already takes 67% of the airline’s bookings during promotions.