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Operator commission cuts could move to North America
The hotly-debated move of some British Tour operators to cut agent commissions to 7% could very well start a domino effect in the North American market, say tour operators.
“Absolutely, it could happen here,” said Judith Thomas, Chairman and CEO of the National Tour Association.
“It first happened to the airlines years ago,” said Ms Thomas, who also owns a group tour company, Unlimited Tours and Travel.
She said so far, no operator in North America has yet to start moving in that direction. But she added she would not be surprised to see it happen.
She said if the larger group tour operators start the practice, others could easily follow in a domino effect.
She also made the point that some tour operators are more reliant on agents than others.
She said North American tour operators are just starting to talk about the European move to cut commissions.
Two other British tour operators emulated Thompson Tours in cutting commissions to 7%. They were First Choice and Thomas Cook, said ARTA Online.
Thomson UK retail and commercial director Derek Jones claims to have received a “measured” approach from the trade on its move, as reported in earlier TravelMole accounts.
Mr Jones said many retailers understood the operator’s position that it needs to cut distribution costs.
Mr Jones stressed that Thomson values third party agents and needs to work with them.
Report by David Wilkening
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