ABTA president warns mass-market commissions could go

ABTA president Martin Wellings has warned agents commissions from tour operators for mass-market European holidays could be scrapped in the next decade.

Speaking at the Travel Technology Initiative conference in London, Wellings predicted mass-market European operators will ditch brochures in five years’ time because holidays can be sold just as effectively direct online or through call centres.   He believed this would lead to commissions being dramatically reduced, or even scrapped, as high-street agents would no longer be seen as cost-effective or viable distribution channels.

“When the public no longer demands brochures, operators will move their marketing away from retailers. Their commission would then match the generosity of the airlines,” Wellings said.

“When operators don’t have to rack brochures they no longer need agents.”

Wellings said commissions from long-haul operators were safe “for the foreseeable future” as agents can help holidaymakers create complex itineraries, while other non-European trips would also continue to be booked through travel agents.