The appeal for pricing fairness by an industry agent has yet again gone unheeded by leading operators, drawing attention to an ongoing debate.
- In a sector marred by consistent discrepancies, a recent plea highlights the struggles faced by agents aiming for transparent pricing.
- The persistence of price disparities between consumer-facing and trade platforms has sparked calls for a resolution among independent travel agents.
- Industry comments reveal a dichotomy between proclaimed support for agents and tangible actions by major operators.
- Agent Lynne Cuthbertson’s plea underscores a critical issue affecting agent profitability and customer trust.
Despite a heartfelt appeal for price parity made by Lynne Cuthbertson of The Big Surprise, part of the Merlin Travel Group, industry giants like Tui, easyJet holidays, and Jet2holidays remain unmoved. In a letter widely supported by the travel trade, Cuthbertson highlighted the disparity in pricing which forces agents to either discount their commissions or appear to overcharge customers. Cuthbertson stated that the assurance of competitive commissions often proves to be misleading, referring to them as mere ‘smoke and mirrors’.
Jet2holidays has reiterated its commitment to a pricing strategy that it claims has been effective for over a decade, promoting transparency and commercial viability. According to a spokesperson, their Partners2Success initiative is designed to support agency growth, although the lingering issue of price parity remains unaddressed. Similarly, easyJet holidays lauds its efforts to meet agent needs through incentives and streamlined commission structures, but it offers no sign of rectifying the price gap that agents like Cuthbertson find troublesome.
For Cuthbertson, who has been in the industry for less than two years, the lack of price parity is a significant frustration. She voices concerns about the time lost in matching prices on various platforms, arguing for clarity and upfront commission rates. Her reliance on companies like Tui, easyJet holidays, and Jet2holidays is considerable, although her business also covers long-haul and cruise bookings where pricing is generally fairer. Her lament is shared by established agents who view the lack of parity as a barrier to sales and loyalty.
Industry voices such as Lee Harrison of Malvern World Travel advocate for price parity, which they argue would facilitate easier sales and foster greater loyalty. Harrison criticises the necessity of negotiating price differences with clients who often verify prices online before engaging in a sale. Meanwhile, Chris Bailey of Bailey’s Travel insists that optimal commission rates are crucial for the sustainability of agency businesses, dismissing the prospect of reduced earnings as unreasonable given operational demands.
Cuthbertson’s plea is echoed by others, who note the potential for improved sales if operators addressed price disparities. The argument follows that aligning consumer and trade pricing could enhance agents’ ability to upsell products and secure both trust and business growth. However, the larger operators remain apprehensive, wary of the implications within an intensely competitive market landscape.
The ongoing dialogue reveals a complex industry issue that remains unresolved, highlighting a need for coherent strategies to bridge the current pricing gap.
