NEWS
INDUSTRY COMMENT
Worst is behind
you, look ahead
Independent agents need stable and
reliable partnerships to take them forward
Derek Moore
AITO chairman
Statistics show that we are
officially out of the recession,
and while it might still be a
struggle for many of you,
the leading independent
agents are doing their best
to innovate and remain at
the top of their game.
So where are the
opportunities for travel
agents? Providing enhanced
customer service is one of
the few opportunities to
differentiate your agency:
if you’re the same as your
competitors you’ll die; dare
to be different and you will
get noticed by tour operators.
Savvy travel agents need to
cultivate relationships with
reliable and stable partners.
I believe that independent
agents have an excellent
opportunity to cement these
links; they can have their
pick of the tour operators if
they can demonstrate a
consistent flow of bookings
and the operators will
reciprocate with incentives
such as enhanced commission,
training and fam trips.
The recent decision by
Thomas Cook to withdraw
its Web Match facility shows
how hard-nosed the market
is becoming. If agents are
not seen to be performing,
then tour operators will go
elsewhere and find that
business for themselves; they
can work harder to find those
elusive clients with the
commission they are saving.
“Seek new
partners and…
the future should
be productive”
It’s a similar story with the
internet companies: they
have few overheads, no
agents to pay commission to
and can also chase clients.
I would congratulate any
independent agents that are
left standing after the nastiest
recession in memory. The
worst is behind you so be
brave – seek new partners
and develop any potential
opportunities and the future
should be productive.
Are you optimistic about the future now
the recession is over? Get talking at
www.travelweekly.co.uk/travelhub
‘OTAs can still be
agents,’ says ABTA
Travel Weekly reporters
ABTA chief executive Mark
Tanzer has reassured online
travel agents (OTAs) that their
status as agents will not be
affected by proposed changes
to financial protection.
Last week, ABTA revealed
its members had voted “overwhelmingly”
to have flightonly
and ‘click-through’
purchases on the internet
included under financial
protection rules. The association
is to advocate an overhaul
of consumer protection in
its response to the European
Commission’s (EC) consultation
on the Package Travel
Directive (PTD).
The ABTA submission to
the EC consultation will also
suggest any travel organiser
who assembles and sells
such arrangements should be
responsible for the protection
of the customer’s money.
However, OTAs, namely On
The Beach and Advantage
member Holiday Discount
Centre, raised concerns about
a one-size-fits-all solution.
OTAs now also offer supplier
failure insurance, meaning the
consumer is fully protected,
they argue. Leading independent
UK online travel agencies
said expanding the scope of
consumer protection threatened
their agency status and
would push consumers away
from the trade.
On The Beach finance director
Geoff Wood said: “I think a
one-size-fits-all solution has a
number of flaws.”
Holiday Discount Centre
managing director Steve
Campion said the existing
regulatory system should not
be expanded but ripped up
and reformulated to reflect
how customers are behaving.
Tanzer said OTAs, which are
not currently covered by ATOL,
were primarily concerned
about the cost implications of
financial protection as well as
the costs of implementing a
new system.
Tanzer said: “What we are
proposing does not mean they
cannot carry on as agents.
It is not part of our submission.
Everybody should have
a responsibility to protect
people’s money. The more
people brought into the ATOL
scheme the lower the cost of
protection.”
g ABTA members will start
receiving questionnaires
this week calling for views
on the EC Air Passenger
Rights consultation and
the UK government ATOL
consultation. ABTA
members need to respond
by February 12.
ABTA PROPOSALS FOR PACKAGE TRAVEL DIRECTIVE
M Business travel should be excluded from
being covered by the Directive.
M Stand-alone airline seat-only sales should
be protected, but this should be outside the
package travel arrangements.
M A more even playing field is needed
between the travel organising and aviation
sectors than between member states.
M The link between price and brochures
should be broken to allow greater
Tanzer: reassured OTAs after
ABTA member vote last week
flexibility in information delivery, via other
channels including the internet.
M Flexibility in allowing contract changes
should be retained, especially around
the ability to levy surcharges and vary
accommodation.
M Support for a new label for travel
protection provided it is clear and backed
by considerable marketing spend by the
European Union and not members.