Operators are sympathetic to a plea by agent action group Target to pay commission up front on holiday deposits, but say efforts should focus on securing financial support from government.
Travel Agents Reform Group Engaged Together (Target) wants operators to agree to a Fair Share Code to help agents’ cashflow and for consortia to lobby for agents to be paid commission on the deposit element of the booking up front, instead of when balances are paid. It said it would draw up a list of operators that sign up to the code.
The Specialist Travel Assocation (Aito), which represents more than 100 operators, said now was “not the time to make bold demands”, while Advantage Travel Partnership said it had already asked suppliers to update policies to support members on this issue in March 2020.
Target co-founder Graeme Brett said agents were frustrated at receiving no income when bookings were amended or cancelled and the deposit kept by the operator.
Agents gave examples of operators retaining deposits but taking back agent commission when clients cancelled, and of operators keeping deposits without paying anything to the agent who oversaw the booking and incurred card fees.
They also cited scenarios where bookings face several amendments but commission is paid only when the balance is due.
Target is calling for operators to pay commission up front on the deposit, at the ‘relevant rate’ or as a percentage of the booking, with the rest after the balance is paid.
Brett said: “It’s common sense but certain companies are not doing it.”
If the booking is cancelled, Target wants agents to be able to keep their commission to recompense them for their work, but it does not expect commission where the customer receives a full refund.
Brett conceded operators may need to increase deposits to pay some commission early.
Agents’ cashflow crisis has been exacerbated by the number of bookings deferred to 2022.
Aito head of commercial Bharat Ghadhoke said operators were also struggling financially, noting “challenges complying with this request”. He said: “We should be talking to government about funding rather than asking for money from other beleaguered businesses.”