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airtours to review staff pay

(30 November 2001)

AIRTOURS has pledged to review basic shop staff pay in a bid to drag travel retailing out of the dark ages under the MyTravel banner.

Group chief executive Tim Byrne said the salaries of its 4,500 UK retail staff could not be kept at their current levels in light of the group’s plan to revolutionise the way holidays are sold.

“Staff should be able to get a mortgage on their basic salary,” he said.

Basic pay at Going Places stores is estimated to be £6,500-£8,000.

Retail managing director Dave Harris, who disclosed plans for an £8,000 starting salary earlier this year in line with the national minimum wage, refused to comment.

But the latest pledge would appear to confirm the long-held belief that staff pay is too low.

A spokesman for the shop workers’ union Transport Salaried Staffs’ Association said: “There is a problem with basic pay. It’s amazing how close to the minimum requirement multiples will pay. We’d welcome a change.”

The move comes as Airtours renames itself MyTravel Group, subject to shareholder approval. The group is rebranding all shops by the end of next year as well as its aircraft, call centres and cruise ships.

Bosses stressed it was not simply a rebrand but a cultural change in travel retailing.

The staff payment structure will be reviewed to accommodate this new way of thinking, which encourages customers to book through their preferred channel, be it Internet, telephone or travel agent.

This could see commission on Internet bookings going to stores or a bonus structure so agents are not reliant on commission on holidays they sell.

Airtours UKLG Richard Carrick said: “We want to improve basic salaries. We will not move away from incentives but there are different ways of doing it.”

Traditionally, travel agents have viewed the Internet as a rival channel but under the MyTravel concept, they will need to encourage customers to book how they choose.

Carrick added: “It’s not for us to decide how customers should book their holidays.”

In-house operator brands, such as Airtours Holidays, will remain but the MyTravel name will be on all brochures.

Retailers have already criticised the move as effectively racking brochures advertising rival agencies.

Midconsort managing director Charles Eftichiou said: “It’s kicking travel agents right where it hurts.”

Advantage Travel Centres sales and marketing director Colin O’Neill said: “This may become an issue in the same way as direct phone numbers are in our overbranded brochures.

“It could cause us difficulty because MyTravel could increasingly be identified as a retail brand. We will effectively be advertising another retailer.”

A Travelcare spokesman added: “It is a point of concern but we will wait to see the brochures.”

 

Juliet Dennis