Retail consultant Mike Greene drew hisses from the audience when he suggested that agents should make a loss on some bookings to retain their clients.
During the panel discussion, several agents, including Rachel Hewitt of East Coast Travel Agency, highlighted the difficult position they were in when a client wanted a mass market holiday and asked if they could match the price on the web.
Greene said: “Look at the lifetime of the customer. If they start to go elsewhere for a couple of holidays, then you run the risk of losing them. You want them for all of your business and sometimes you may have to take a loss.”
But former retailer Andrew Dickson said Greene needed to have a greater knowledge of the industry.
“With respect, Mike doesn´t really understand the nature of our business. Even if an agent gives away all their commission, they still can´t match the web prices.
“In that case, if it was a case of keeping the client, I would make the booking myself on the web and charge a small fee to the client.”
But Dickson said retailers should examine the markets they were in and, if necessary, make changes.
“If you can´t compete, then move into a market where you can. You may have to change your core business. If you´re filling your windows with offers of cheap flights to Majorca, which clients can do themselves, then your in the wrong market.”
by Jeremy Skidmore (www.jeremyskidmore.com)
