AITO defends Kuoni in row over card fees
AITO has defended Kuoni’s decision to increase commission to travel agents to help offset a ban on card fees after the operator was accused of ‘capitulating to rotten, consumer-hostile legislation’.
Following Sunvil’s lead in July, Kuoni announced this week that it would pay all independent agents an additional 0.5% from next January when the new ban on credit card and debit card charges comes into effect.
The news was welcomed by AITO, which had called for operators to raise their commission to help to cover agents’ costs. However, one TravelMole reader said the move would only lead to higher holiday prices for everyone, rather than an additional charge only for those who pay by card.
"This legislation only benefits the card companies, to the cost of the consumers who, until now, have not been paying by card," they said.
"Great, it’s lovely that agents are getting 0.5% commission rise but the card charges are what, at least 1.5%, and often far more. So this story is little more than rotten spin IMV. Kuoni is not ‘looking after its agents’ so much as it is capitulating to rotten, consumer-hostile legislation."
AITO chairman Derek Moore agreed that tour operators will increase prices to include the cost of potential card usage, which will mean that non-card users will be penalised. However, he added: "Kuoni is only trying to share the extra costs incurred by travel agents as a result of this new legislation.
"It is all very well saying they should be fighting this new legislation but meanwhile they, and other tour operators, want to help their agents. Is that so wrong?"
Gemma Antrobus, chair of AITO Specialist Travel Agents and managing director of Haslemere Travel said: "Having personally been part of the working committee within AITO Council, which undertook an exercise earlier this year to determine whether this was a viable solution for our members (it was), I’m delighted that non-AITO operators are following suit.
"In my eyes, this looks to be the most sensible solution possible for operators who work with agents, as the money agents receive is pipeline money."
Sunvil and ABTA chairman Noel Josephides said he was pleased other operators have followed his company’s lead in raising commission.
"Sunvil was at the forefront of this initiative, without making a big song and dance about it; we felt it important to support those who back us at the coal face," said Josephides. "We’re glad that others are following suit."
Experience Travel Group has also increased its commission to agents.
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
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