Business agents so grateful for fees: Comment by J.Skidmore
Business travel agents are breathing a sigh of relief that the vast majority of their work is fee-based.
Had they been operating on commissions, many of them would be struggling to stay in business.
At the Guild of Business Travel Agents’ conference in Madrid, members reported that businessmen and women were still keen to travel and, aside from SARS-hit Hong Kong and China, the number of transactions was not hugely down. The big change is that turnover for business agents has fallen off a cliff because everyone is tightening their belts.
Business travellers want £300 flights where they once wanted £3,000 trips; they’re trading down from business to economy and to low-cost flights; and they want their travel managers to find them the best deals.
This is a not a big problem for business agents because they charge a fee for their service and if they can save their clients money, they deserve that fee. In fact, you could argue that their role is more vital than during a boom time when companies are throwing their cash around. But if they were on commission, they would now be earning peanuts.
If only the public were prepared to pay leisure agents a fee for their professional service, the industry would be far healthier.
But all the time they expect a week in the Mediterranean for £99 and a thank-you, retailers will continue to struggle.
Read previous comments by Jeremy:
16-May-2003 Bookings back – at a price: Comment by J.Skidmore
09-May-2003 War of words is healthy: Comment by Jeremy Skidmore
02-May-2003 Management must share the pain: Comment by Jeremy Skidmore
25-April-2003 Home workers no longer the poor relations
25-April-2003 Appointment of Tobias is welcome
17-April-2003 Domestic operators must help the trade
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