It will never work

TOUR operators have rubbished claims they are planning to slash base commission for agents.

The strong reaction comes after Cadogan Holidays managing director Gary David alleged operators are considering cutting their lowest commission to 5%.

David issued a press release claiming “a number of tour operators have suggested base commission should be between 5% and 10% with incentives to achieve up to 15%”.

The release added operators should be able to change commission on individual late holidays depending on how much they were set to lose. It said many were “more than happy” to sell holidays at net cost and allow agents to charge a fee for their service.

But Travel Weekly has been unable to find a single operator who admits to knowing anything about the plans. Many said it would be unthinkable to damage their relationships with agents by taking an axe to commission.

Sunvil managing director Noel Josephides was among more than 30 operators contacted by Travel Weekly who said any such move would be completely unworkable.

“The problem with the industry at the moment is there are too many companies that have exactly the same product. When you have got that sort of situation, the only way you can sell your product is to give a higher commission,” Josephides said.

“The only way you can dictate commission levels is by withdrawing from agents completely and selling direct or by producing a product that is unique enough so the agent comes to you and you control the amount of commission.”