Agents booking rail travel have had their commissions cut by the Association of Train Operating Companies this week.
ATOC has cut commissions from 5% to 4% and is also forcing agents to take out bonding.
In March 2011, it is going to reduce commission even further to 3%.
Corporate online rail specialist RailGo said the move will hit its bottom line, but has pledged not to increase its customer transaction fees.
“ATOC’s decision to cut commission rates and enforce us to take out a bond will affect our bottom line quite considerably”, said Nathan Cousins, business development director, RailGo.
“However we have resolved not to pass on any increase to our customers. By reviewing our own costs and negotiating various processing fees we have been able to hold our fees at the current rates for the rest of this year and throughout 2011.”
RailGo charges corporate account holders a card handling fee, plus £2.00 per transaction if the ticket is issued online or sent by post, or £4.50 if the traveller collects their ticket at the station, as train companies charge agents for tickets on departure.
By Bev Fearis
