Thomas Cook accused of u-turn on agent promise
Thomas Cook has been accused of reneging on its promise to agents after it was revealed that it is cutting commission.
The operator insisted independent operators were still important to its business, but it said now was the right time to ‘adjust’ commission rates for third parties.
A spokesman confirmed this meant that, overall, rates had been reduced.
Thomas Cook product and yield director Stefanie Berk said: "We recognise the importance of third-party distribution, which forms part of our plans for the foreseeable future.
"However, we have made significant changes to our business in recent times, such as the realignment of our principal brands and introduction of a new City Breaks programme. In line with these changes, the time is now right to adjust commission rates for third party agents and place a new emphasis on driving up retail partners’ performance and rewarding them for volume."
Thomas Cook won favour with the trade when it announced it would cease undercutting agents, however in recent weeks retailers have become frustrated at the operator’s online discounting.
One, Matthew Ruth, wrote on the Facebook site Travel Gossip: "When they [Thomas Cook] first reduced commission they promised a level playing field – they have reneged on that and it stinks."
Homeworker Steve Quinlan urged agents to stop selling Thomas Cook altogether, writing on Travel Gossip: "Didn’t you all see this coming? Walk away from them as I did a long time ago. They don’t value your business so don’t give them any."
Thomas Cook refused to disclose how much commission had been reduced overall. A spokesman added: "We don’t disclose our commercial relationships but individual arrangements are or will be in place for each of our partners."
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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