Travel agency boss Andrew Earle has urged operators to increase holiday deposits to prevent cancellations and compensate agents for their work.
Speaking during a panel debate at The Co-operative Travel Consortium conference, the owner of Andrew Earles Holidays suggested deposits should be around £200 to ensure clients are committed to a booking and allow operators to pay agents commission on the deposit.
The plea comes as major operators such as Jet2holidays and easyJet holidays offer low deposits of £60 to encourage bookings as consumers face increasing household costs and amid fears of further interest rate rises.
Earle said: “£60 is enough for people to walk away from. The time invested in the booking process is huge and cancelling the holiday is not that easy and means you [the agent] earn nothing. I still wish suppliers would give us something.
“Longer term there needs to be a different strategy where people commit to £200 and it gives operators more ability to pay agents at the time even it doesn’t turn into a booking.”
Only some suppliers pay agents commission on the holiday deposit which means if a holiday is cancelled the agent has not earned any money.
Rich Simpson, The Co-operative Travel Consortium’s governance and compliance manager, said cancellations in fact cost agents money, such as credit card charges. “Agents are incurring costs every time bookings are cancelled,” he said.
The Midcounties Co-operative’s chief offer for travel and leisure Sara Dunham, also on the panel, said clients were currently opting to cancel holidays rather than switching to cheaper alternatives.
“Customers are more stretched and are cancelling rather than downgrading to cheaper holidays,” she said, adding there was an increasing divide between clients “who can afford a holiday and those who cannot”.