Morocco the venue for classic pantomime

TravelMole Comment by Jeremy Skidmore

Four days of high drama, plenty of villains and cries of ‘he’s behind you’ from tour operators as they followed each other in cutting commission. No wonder they hold the ABTA Convention in the pantomime season.

Playing the part of arch villain was Thomson’s sales and marketing director, Miles Morgan, all spiky hair and attitude, announcing it would be cutting basic commission to 7%. Welcome to the convention, agents (the few that were there).

Enter Triton director John McEwan to add to the drama. He couldn’t pre-empt negotiations with Thomson, other than to say that there was no way on God’s earth that they would ever accept 7%.

Unfortunately for him, there’s no way on God’s earth that some of his better-performing agents are going to turn down the chance to earn added, albeit smaller, incentives for selling Thomson.

Enter another villain, that journalist’s dream, First Choice’s managing director Dermot Blastland. He couldn’t comment either, other than to say that Triton had ‘come out of the tardis in the wrong year’, a statement not expected to smooth relations with independents, and to smile wryly when asked if it would be following suit.

He’s behind you! Who’s behind you? Thomas Cook, of course.  UK chief executive Manny Fontenla-Novoa reveals that he had thought about retiring on a high after an unbelievable 2005, with record profits and margins at an unprecedented 5%. Hope for agents? No, no, costs still need to be controlled. “Of course we will cut commission,” he announces.

Cue a desperate plea from the Co-op’s Mike Greenacre. Would Manny reconsider, he begs, in front of a packed audience? This, in football parlance, is like shooting from inside your own half. You’ve got two hopes, no and Bob.  Mr Fontenla-Novoa is a likeable and reasonable chap, but didn’t get to the top by changing his mind over an industry breakfast.

Back in a packed conference hall, poacher-turned-gamekeeper Paul Evans tells operators to cut the BS. The dynamic packager, once the vertically integrated champion, hits the nail on the head by revealing the real reason why operators are cutting commission. They want to gradually phase out third party travel agents altogether and sell as much as possible through their websites and the remainder through their own shops.

Amazingly, there are some people in the industry who still don’t realise this.

And so what now? Commissions will fall further and all other sectors, such as cruising, will follow suit. Anyone who doesn’t believe this is living in denial. The only companies which haven’t yet cut commission are those who are dependant on agents for a large chunk of their business. But watch that change.

So, what future is there for agents? Not much, under the traditional model. Even if you are a top seller for the major operators, the rewards will continue to fall.

The billionaire John Caudwell, in his speech at the Convention, struck a chord when he told people to pay their staff well. Surely the only way forward is to have motivated, intelligent staff who are prepared to work their local communities. They have the nous to put together their own packages for clients and charge a decent price for that service.

*What’s your view on the future for agents? Email us via the Comment link on this page.