Our survival is under threat, Midconsort warns members
Management of agency consortium Midconsort have warned members to get their act together and support the group’s preferred suppliers – or pay the price of reduced commission.
Chief executive Charles Eftichiou, speaking at the group’s first domestic conference, said at last half the membership were threatening the very existence of the consortium by failing to show support to its key partners.
He said the results of such a fragmented approach could be “catastrophic”.
“Many agents do not avail themselves of the opportunities we provide them,” said Eftichiou. “Not all are supportive. It puts our buying power in danger, it affects our credibility with operators and commission will be cut. The results could be catastrophic. It’s vital to the survival of the consortium.”
He said only 50% of the membership were participating in its Targets Worth Chasing scheme, resulting in only 60% of targets being hit. Even fewer were actually loading sales onto the system, he added.
“Our goal is to get 100% participation,” he said. “It’s a simple formula. Preferred suppliers give us improved commission. Use these preferred suppliers and you’ll earn more money.”
But he appeared to rule out making the backing of preferred suppliers a condition of Midconsort membership – at least form the time being.
“I don’t think we’re at that stage yet,” he said.
Chairman Neil Basnett also said the group’s survival is under threat.
“If members want it and suppliers can see the benefits, it will survive. But these are two big ifs,” he told delegates. “It’s crucial that we all support one another. It a massive a waste of time for Charles to negotiate deals if members don’t support the suppliers.”
But he also had a message for his chief executive. “Charles must do his homework and do deals with operators with whom there is demand among the members.”
Cosmos managing director Terry Williamson also urged the members to show their support.
“We want to support consortia but they have to behave as one – and they regularly don’t do that,” he said. “I am happy to give incentives but you have to get behind it.”
Responding to criticisms that operators are aggressively seeking other channels of distribution, Williamson said: “The cost of distribution has gone up and levels of support have gone down. We need to be where people want to book. What do you want me to do? Sit here and go out of business?”
Report by Steve Jones
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