Commission cuts the ‘most significant development for 15 years’
The raft of commission cuts sweeping the industry is the most significant development in the sector for the past 15 years, Libra Holidays sales director Paul Riches has said.
“In terms of the relationship between agents and operators and the future of travel agents, it has changed everything,” he told TravelMole. “It completely blows apart the traditional business model.
“It will put the cost-base of agents under even more pressure and if tour operators get it wrong, they too will be under pressure.”
The comments came as more operators began reviewing their commission terms and agreement with agents as the fall out continued from Thomson’s move last week.
Richies said Libra had no immediate plans to reduce commission but said there could be “tweaks” in the future.
“We have existing commercial terms with retailers and we have no intention of breaking those,” he said. “If our model works in today’s environment – which is very different from yesterday – than we will carry on as we are.”
Speculation was intensifying that MyTravel will follow the commission cuts of Thomson, Thomas Cook and First Choice. Observers said it was inconceivable that the operator will not head down the same path.
“As First Choice and Thomas Cook have already indicated, Thomson’s rivals simply cannot afford to seen as uncompetitively priced in what we all know is a price sensitive market,” said one source.
MyTravel, which is in a closed period, said it was “taking a step back” from the issue and declined to comment further.
Attention will now focus on the independent sector to see how they react to the cuts and whether they too will take a harder line.
However, observers said specialist operators are highly unlikely to follow suit, at least not to 7%.
“Unlike the mass market operators, independents need the distribution of the retail consortia,” said one.
Report by Steve Jones
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
France prepares for a massive strike across all transports on September 18
Turkish tourism stalls due to soaring prices for accommodation and food
CCS Insight: eSIMs ready to take the travel world by storm
Germany new European Entry/Exit System limited to a single airport on October 12, 2025
Airlines suspend Madagascar services following unrest and army revolt