service fees create confusion claims BTI chief

THE move away from commission payments has caused confusion in the industry, BTI UK head of client finance Nigel Bourke has claimed.

Bourke, speaking at the Business Travel Manchester exhibition, said the lack of a common standard in the market was creating problems.

“We have variations on segment, management and transaction fees and these are all related to the type of ticket issued, whether it be domestic, long-haul or European,” he said. “I hope the industry ends up with one standard. This would make things clearer for both the client and travel management company.”

Bourke said the industry in Singapore had a fixed system of transaction fees that was highly regulated.

Universal Music director of international travel Tom Stone said transparency was another issue as some travel management companies did not make it clear when they charged for credit card fees and VAT on invoices.

Rail companies were also criticised for the cost to the agent of issuing tickets.

Stone and Bourke both said the cost for issuing a ticket regularly hit £50, making it hard for agents to make a profit on any tickets sold.

Stone said: “This is one area where the agent adds very little value. We do not stop people booking rail tickets through our agents because they are full service, but we do encourage people to book direct because it is much cheaper.”

Although there was strong support for agents, the seminar’s participants agreed their role had changed.

They said agents were now required to drive their clients’ costs down rather than just make travel arrangements.