First Choice to reveal commission overhaul ‘within 10 days’

Monday, 09 Dec, 2005 0

First Choice chief executive Peter Long has said a final decision on its commission structure is likely to be taken within 10 days as talks continue with agency consortiums.

He said the senior management team of Dermot Blastland, John Wimbleton and Neil Morris were currently discussing terms with retailers.

Refusing to be drawn on the outcome, Long said an announcement will be made shortly.

“I expect they will be concluded in seven to 10 days but I cannot comment on what the outcome is likely to be,” said Long.

“We believe in strategic partnerships and still have strong relationships with retailers but clearly there is a debate going on. But we have to mindful that we have partnerships in place and I don’t think the world is going to change in the January booking period.”

It seems clear however that First Choice is set to reduce commission.

Mainstream sector managing director Dermot Blastland revealed exclusively to TravelMole during the ABTA convention that it “clearly can’t allow our competitors’ costs to be lower than ours.”

He also shrugged off threats by independent consortium Triton that it would stop selling operators which cut commission.

He said Triton had “come out of the tardis in the wrong era.”

Sources close to the operator said Thomson is likely to be £30 to £50 cheaper in the peak post-Christmas booking period, giving it a huge advantage.

“The Thomson brand has a lot of consumer pull as it and the price advantage will leave everyone else standing,” said the source. “Operators like First Choice simply can’t let this happen.

“If it’s too late to change the pricing, they’ll have to compete in other ways. Two weeks for the price of one or more free child places for example.

“Thomson’s rivals have been backed into a corner.”

Long, announcing record profits of £114 million, took a more diplomatic stance than his MD, insisting third party travel agents will continue to play an important role in “certain areas of the group.”

Report by Steve Jones