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tui uk ready to level playing field

(26 April 2002)

TUI UK is ready to ditch the much-hated requirement for independent agents to hand over customers’ booking details as part of a shake-up of the Thomson Holidays Preferred Agents scheme.

The move is part of efforts to give independents more freedom and remove disincentives to booking. The requirement for agents to disclose customer names and addresses was part of its three-tier rewards structure, introduced in October 1998. Agents aiming for the top commission band had to adhere to strict commercial agreements, but were outraged that their hard work could be used by Thomson for future direct mailings.

TUI UK managing director Chris Mottershead admitted Thomson’s intention had been to contact customers directly but the operator had never got round to organising a satisfactory way of using the details.

“There were great intentions but we are now going to take it off the system, which will reassure agents,” he added.

Thomson will also waive its requirement for agents to return part of their commission to qualify for a discount.

Retailers currently have to pay back a small percentage of the commission given by Thomson if they want to offer certain discounts on its products to customers. Only Lunn Poly and a small number of selected agents are exempt from this.

Mottershead said: “If we have a 25% discount the majority of agents would have to give us 3% commission back. We are now waiving that 3%.”

He said the pay-back deal was  used by operators to boost cash flow but did not provide a level playing field for agents outside the vertically integrated group.

 

Juliet Dennis