TUI to cut commission on flight only
TUI is cutting agent commission on Thomson Airways charter flight-only products in November.
From November 1, commissions will be slashed from 10% to 0.1% on flight-only sales, including extra facilities, amendment charges and cancellation charges.
The company said the move brings it in line with other chartered and scheduled operators.
"This decision has not been taken lightly but in making the amendment, we recognise the flight only landscape has altered greatly in recent years and Thomson Airways is competing with both traditional charter airlines and also other scheduled carriers," said a spokesman.
"Therefore, it has become necessary for the business to ensure we protect our position in an ever changing and aggressive marketplace. ATOL agent’s terms will remain as is."
TUI also confirmed that from the same date, Thomson Airways charter flight-only product will now be sold by directly and will therefore no longer be subject to the ATOL regulations.
"The decision to remove ATOL bonding from Thomson Airways charter flight-only bookings has been necessary due to the fact that the current regulatory scheme that is in place is not consistent across our industry, with certain airlines not required to pay the current levy," said the spokesman.
"We are currently working with our partners affected by the change and will be supporting them with any changes to procedure needed as a result of the removal."
TUI said it will continue to lobby the CAA and the Government to seek changes to the system.
"We want to ensure the creation of a level playing field and one where the subject of ATOL protection does not leave customers with any doubt as to whether their holidays are financially protected or not."
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By Bev Fearis
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
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