TMCs suffer rail commission cut
Thursday, 26 Feb, 2010
0
A reduced commission structure agreed between the Guild of Travel Management Companies and the Association of Train Operating Companies will have another knock-on effect.
Independent online train ticket retailer Thetrainline.com is to further trim commission by passing on the cost of bonding to travel management companies.
Sales and distribution director Adrian Watts said: “One advantage of thetrainline.com business model is that our partner TMCs are already bonded under our umbrella agreement; however with this forthcoming commission restructure we will have to pass on the cost of bonding to them, effectively reducing their commission by a further 0.5%.
“However, I am pleased that all of our business customers will shortly benefit from a range of new product initiatives from thetrainline.com, which will help soften the blow.”
Commenting on the ATOC commission reduction, he said: “Whilst a reduction in commission for our own partner travel management companies and direct corporate business is disappointing, at least we now know our remuneration and can plan accordingly for the next three years.
“As a result of this agreement it’s inevitable that our corporate and government customers will be paying higher fees when booking rail travel to recover lost commission and cover bonding costs.”
News of the reduced commission structure came the day the GTMC announced an increased levels of rail business in the final quarter of 2009 (see separate TravelMole story).
by Phil Davies
Phil Davies
Have your say Cancel reply
Most Read
TRAINING & COMPETITION
Posting....
Skip to toolbar
Clearing CSS/JS assets' cache... Please wait until this notice disappears...
Updating... Please wait...
Subscribe/Login to Travel Mole Newsletter
Travel Mole Newsletter is a subscriber only travel trade news publication. If you are receiving this message, simply enter your email address to sign in or register if you are not. In order to display the B2B travel content that meets your business needs, we need to know who are and what are your business needs. ITR is free to our subscribers.
































Phocuswright reveals the world's largest travel markets in volume in 2025
Higher departure tax and visa cost, e-arrival card: Japan unleashes the fiscal weapon against tourists
Cyclone in Sri Lanka had limited effect on tourism in contrary to media reports
Singapore to forbid entry to undesirable travelers with new no-boarding directive
Euromonitor International unveils world’s top 100 city destinations for 2025