Ikos Resorts ‘developing new approaches’ to trade strategy amid agent criticism

Ikos Resorts has outlined plans to “develop new approaches” to its trade strategy and “more evenly distribute complimentary transfers” following criticism from agents.

Lee Barker, regional director of sales and marketing, said the all-inclusive resort brand has spent months working on a project that will benefit agents and “gradually phase out several elements”.

It is unclear which elements would be changed, but Barker said further details are due to be announced soon.

His pledge came after Cartology Travel agent Sarah Ives shared a post on LinkedIn in which she criticised Ikos for “undermining” the trade on rate parity and shared her frustration that the brand includes free transfers for customers who book direct but not for all third-party bookings.

Her post attracted a number of responses from agents, many of whom agreed with her points.

The criticism came as Ikos Resorts launched sales for its first property in Crete, Ikos Kissamos, in the UK.

Speaking to Travel Weekly, Ives said: “Of course, I’m not here to police what people do with their properties, and if a company doesn’t want to sell through the trade, that’s their decision.

“What frustrates me is that there’s a perception that Ikos are a trade-friendly brand when they’re not – it’s pure hypocrisy. I see agents promoting each new property they launch but those same agents have shared the struggles I have.”

Ives described the Ikos product as “fantastic” and said there is enough appetite among Cartology’s customer base to sell it “day in day out”.

However, she added that in doing so, the agency would be “taking a really big risk”.

“What prompted my LinkedIn post was a recent interaction with a client of ours who said Ikos had offered them 10% off their next booking, if they booked with them direct. The discount wouldn’t have applied if they’d booked again through us,” she said.

“That’s on top of the fact Ikos includes free transfers for direct bookings but not for those through the trade, so agents have to pay for the transfers which comes out of our commission margin.

“If you’re booking a really top suite it’s fine because your margin is big enough, but if you’re booking the regular collection you end up having to cut your margins to cover the transfers because that’s what the client sees online.”

Ives said she “values partnerships with hotel partners so much” but that there needs to be trust between the two parties for “the marriage” to work, and “we can’t really trust them [Ikos] right now”.

“We’re always giving them plenty of exposure, only to have our hand bitten by them. It just stings a bit,” she added.

Trade commitment ’remains strong’

Barker said the company “recognises that some long-standing initiatives”, including the repeater discount and complimentary transfers, “may now need adjustment to better align with our trade partners’ needs”.

“Over the past few months, we’ve worked closely with strategic consultants to develop new approaches and have listened carefully to agent feedback,” he added.

“To create a more balanced approach, we will gradually phase out several elements and more evenly distribute complimentary transfers across partners.

“Interim strategies are and will be in place until a long-term plan is finalised. We look forward to sharing these updates soon.”

Barker said Ikos’s commitment to the UK trade “remains strong”.

He explained: “The launch of our UK regional sales office in 2020 and the addition of four new sales managers this year reflect our dedication to supporting travel agents.

“Additionally, our travel expert portal and growing Ikos Prestige programme continue to provide valuable resources and incentives for our partners.”

Barker said Ikos has seen “significant growth in trade business over the last two years” as a result of the increased focus on agents, adding: “We believe these upcoming changes will further strengthen our partnerships and keep us at the top of our trade partners’ preferred lists.”

Agents in agreement with Ives on LinkedIn included Duncan Greenfield-Turk, founder of Global Travel Moments, who said businesses must “listen” to partners “to be seen as collaborative and sustainable”.

He wrote: “Rate disparity, direct-only perks, and scattered pricing models send a very clear message: ‘We don’t need you.’ And that’s a tough pill to swallow when we’re delivering high-converting, loyal clients. It doesn’t have to be this way. There’s space for tour operators, advisors and resorts to win together but only if the respect is mutual.”

Rebecca Masri, founder of Little Emperors, added: “Whilst of course we earn commission, ‘good’ advisors cannot truly advocate for a product when their clients can receive a better rate or additional perks by booking directly.

“Hopefully this approach evolves in time, and they start to recognise the value of the travel advisor, but until then, it’s hard to see how the trade can fully support these brands.”

Despite the criticism, some agents praised the support they received.

Telina Lawrence, travel manager at The Travel Professionals, defended Ikos Resorts, labelling the brand’s trade team “amazingly supportive”.

“We have had the pleasure to work with Sani and Ikos for many years. The trade team are amazingly supportive. Whether this is for events [or] enquires/bookings, they always go beyond.

“If we are up against BA Holidays they always do their best to help when they can. It’s a very tough market out there currently for us all and maybe at times it would be wonderful to have slightly higher margins. However, we are always hugely grateful for the support they give and we know they are always on hand.”