BA agents' commission to zero

[Flightmapping]

This is not really a surprise, but afaik, they are the first UK (and possibly European) "traditional" airline to do this.

(Sorry, link was using my subsrciption id - pm me if you need the story)

It would be nice to know what their plans are re: their affiliate programme, and whether or not they view this differently - more as a form of advertising than an agency arrangement.

After all, I presume they won't be reducing any fees they pay to Espotting, Google or the London Underground to zero, and we all know that we can offer them a much better ROI - even the no frills airlines are starting to see this

[Shane]

I'm not particularly active in the travel sector but I'm quite interested in how they think they can do this and it not have an adverse effect on their business.

Are they so concieted/misguided/foolish to think that their brand will carry them even when agents stop advertising/actively promoting their tickets ?

Has the travel industry shot it's self in the foot with the competitiveness... to the point that it can't pay for it's own bookings ??

[Flightmapping]

OK,

Here's Easyjet's side of the story. I will have to check this out when I have more time next week, but a statement from BA would be really helpful!!

British Airways is introducing new ticket rules, which will mean that those who buy direct from BA, such as internet users, will be subsidising travel agents. Not surprisingly, the blame for much of this lies squarely at the door of the International Air Transport Association (the club that has presided over some of the most anti-consumer practices in global aviation history).

BA has just told travel agents that it is reducing their commission on all flights to 0% from May. On the face of it, this would appear to be a reasonable case of cost-cutting from a high-cost airline.

Not a bit of it. Under byzantine rules governed by IATA, British Airways must reward travel agents with either a commission on ticket costs or a discounted ticket rate. Given that BA has removed its remaining 1% commission, it follows that it has to provide tickets at a discounted rate to travel agents. This means that consumers who buy direct from BA - either by telephone or the internet - are now having to pay more than if they buy from a travel agent. So, internet users are now subsidising travel agents.

Rather than separate out this additional fare-hike for Internet bookers, BA is hoping to hide it in the “taxes and charges” section which, as recent newspaper reports have pointed out, have become rather bloated already.

Ray Webster, easyJet Chief Executive, said:

“What a sorry mess. Not content with increasing their fares with a fuel surcharge, BA is now asking some of its most loyal customers - those who book direct - to subsidise travel agents. This is lunacy - customers should be rewarded for using the cheapest available distribution channel, not penalised.

“Rather than bite the bullet and let travel agents justify their existence by offering value-adding services that customers are prepared to pay for, British Airways is asking Internet users to subsidise the high street parasites. Most other airlines have followed the example first pioneered by easyJet in 1999 by making internet fares the cheapest available. But not BA.


”For most flights, travel agents add no value for the commission they expect to receive. But once again the club that governs traditional airlines (IATA) has interfered to put the interests of the industry over those of consumers.”

“This is another example of how difficult it is for traditional airlines to shake off the shackles of their high-cost structure and do what is right for the consumer.”

[bazza1603]

Hi,

BA are trying to turn the public against travel agents if this is correct.

I had a passenger today asking me to book London to Australia with BA in world traveller plus (posh economy)

For £100 more I suggested changing once in Dubai and he still got a flexible Business class ticket with Limo pick up and drop in in London Free of charge. For this I charged £80 which is included in the difference above, plus I arranged his visa completely free of charge.

I have cost BA over £2500 in lost revenue today alone, that is why BA dont like us. They prefer people who dont know what they are doing to book the first thing that they see.

The customer was amazed in the cost difference....

I wont say no to booking BA, but I will always try to look after the customers interest and give good advice.

Best regards

Barry

[Mogga]

We could remake that ad with the middle man (bloke sat on the desk...) and show that the man in the middle can make a difference financially in a positive way.

[Flightmapping]

Barry,

Are you saying you switched him to Emirates, and still added an £80 handling fee? I thought EK paid out 9%, so you've earned at both ends

I'm going to be on the move over the next few days, so would anyone perhaps be able to see if Waterside can make a statement about the affy programme?

[Flightmapping]

Another good article (extracts) from Travel Mole. I'd advise anyone in this field to subsribe:

Travel agents have been urged to start charging customers for advice to avoid being fleeced for information by direct bookers.

“People don’t see a problem in talking to a consultant for 45 minutes when they have already made up their mind not to book through us,” she told the CIMTIG seminar in London. “We, the agent, should be paid for our information and feel the information has a value. We should establish ourselves as professionals and be remunerated for the advice we give.”

“They must know the information I have imparted does have a value and if they come back and book it will be refunded,” she said. “We are not a public library and are not funded by the government.”


I tried calling the BA press office, but they didn't return my call. If anyone else would like to have a go, please do.