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Operator confirms commission overhaul
Agents who support First Choice will have to achieve more sales if they wish to earn current levels of commission under plans being drawn up by First Choice.
The operator said that while it will continue to support retailers who sell its product, they will be required to drive more business to earn the same.
Those who currently don’t make an effort will see commission drop and marketing support withdrawn, the company said.
First Choice – which last week unveiled record profits of £114 million – declined to reveal details of on-going negotiations with agency consortiums but said deals were “very close.”
Mainstream sector managing director Dermot Blastland made it clear the traditional business model was changing and that even supportive agents would have to increase sales.
“The historic levels of performance will not result in historic levels of commission,” Blastland told TravelMole. “We understand people have to earn a good margin and they cannot exist on thin air. But neither can we support shops which don’t give us support.
“To get off the base rate of commission agents have to sell one First Choice holiday a week from each of the seasons on sale. We get abuse hurled at us from people who can’t even do that.
“Agents cannot expect marketing support, brochures and top rates of pay if they don’t support us. You wouldn’t expect a garage owner to receive top earnings if he sells one gallon of petrol a week.”
Blastland said 60% of its business through independent agents is generated by only 3% of members, underlining its refusal to pay all agents the same.
He predicted retailers would start to support one, or possibly two mass market operators as selling three or four companies would not give them enough volume to hit override targets.
Report by Steve Jones
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