BA under attack in opening session

Friday, 01 Nov, 2003 0

ABTA Convention Special: British Airways came under attack from travel agents for slashing commission to 1% in a lively debate on the first day of the ABTA Convention in Palma, Majorca.

A session entitled “The Time, The Place” saw several representatives from operators, agents and airlines take the stage for a discussion on topical events, skilfully chaired by convention moderator John Stapleton.

British Airways’ Tiffany Hall was criticised by ABTA’s Sandy MacPherson for chopping and changing its stance on commission in recent years.

“We’ve not been able to settle down with them, because they keep changing their minds,” said MacPherson. “They’re alienating us instead of working with us.”

Ms Hall responded by saying BA had to react to the market. “I wish the market would settle down, but consumers are changing and the market is changing. We’re not turning our back on agents and that’s why I’m here. They’ll get a small commission for selling our products, which doesn’t cover their costs, but then they can charge service fees on top.”

Andrew Dickson, from St Andrews Travel in Bolton said: “It´s easier to put service fees on business fares than it is on leisure fares. Many people won´t accept it.”
Mr MacPherson added: “I think the jury is still out on service fees. It´s difficult to know how many bookings agents are losing by charging fees and we won´t know for a year or so.”

Agents in the audience complained that BA was undercutting them on the internet and many said they were switch selling against the airline.

Mr Stapleton, who demonstrated his knowledge of the industry and refused to let operators, agents and airlines evade questions, asked members of the audience if they thought operators would be next to cut commissions and the overwhelming majority thought this would happen. But Sue Biggs from Kuoni pledged to carry on supporting agents.

“Our average payment for a booking is £275, we train 2,000 agents and we never undercut them. That´s why the vast majority of bookings come through the trade and we have no plans to reduce or stop commission,” she said.

Nick Wrightman of Tapestry Holidays said he supported agents but was not being rewarded with bookings.

“When we started 12 years ago, we weren´t very good and we were getting 95%of our business from agents,” he said. “Now we are an award winning operator, pay 15% commission, never undercut agents if people book direct and yet we now only get 15% of our business through the trade. I don´t know where agents are going with this.”