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By Sarah Thomas
ADVANTAGE Travel Centres’ head office has torn up its commercial agreement with Cadogan Holidays following a dispute over tiered commission levels offered in the operator’s Elite Agents Club.
Cadogan Holidays managing director Gary David plans to boost commission to 21% for top-performing agents and is targeting 600 members for its revamped Elite Agents Club.
However, Advantage has reacted angrily to Cadogan directly approaching members and will end its relationship with the operator on April 30.
In a letter to David, Advantage head of commercial Julia Lo Bue-Said wrote: “We see no point in our partnership continuing. The fact you have targeted our members directly is in complete contradiction of our relationship. You have not even had the decency to inform us of this change.”
David said he was bemused by Advantage’s reaction as the existing 19% commission level with the consortia’s agents would remain and the new arrangement meant the best performers would be “looked after very well”.
“I don’t understand it in the slightest,” David said. “The Elite Club has been running for eight years. All I’ve said is that over the next two years, I’m hoping to reduce distribution costs and increase the number of top performing agents I work with.”
Advantage sales and marketing director Colin O’Neill said: “We’ve never been told Cadogan is unhappy. This is not the way to do business.”