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MyTravel misses opportunity to win trade support

(24 May 2002)

AGENTS claim MyTravel has missed a golden opportunity to get the trade on its side by launching a direct-sell low-cost airline.

The trade gave a luke-warm response to plans for a no-frills carrier which doesn’t pay commission to agents.

MyTravel - yet to appoint a team to run the airline - anticipates 70% of bookings will be on-line.

Heading up the launch of both the carrier and a new digital TV channel, chief executive of global development Richard Carrick said the group was looking for the most efficient distribution. “You cannot operate a low-cost airline on conventional retail commission levels but if people are prepared to be flexible about how they are renumerated, I will have discussions with them.”

Going Places agents will not be treated any differently to other retailers but there was scope for negotiations with larger agencies interested in buying seat allocations. “There is every opportunity for collaborative talks, especially with agents increasingly becoming like operators,” he said.

While this was welcomed, agents said MyTravel had not seized the chance to woo agents with offers of commission. Advantage sales and marketing director Colin O’Neill said: “If it had paid commission, it may have taken business away from other no-frills airlines.”

Midconsort managing director Charles Eftichiou feared there would be a trend to sell more products direct. “If you rely on the Internet, you could come a cropper,” he said.

Worldchoice member Adrian Swift, managing partner of AFS Travel in New Malden, questioned which agents would book if they’re not paid any commission. “Too many airlines are chasing too few passengers. Going Places staff should be worried. If MyTravel is heading towards Internet bookings, there will be less need for a high-street presence. It’s a gamble.”

The carrier will be launched out of one major UK airport in October with two aircraft initially. Nice, Malaga and Majorca have been tipped by industry sources.

City destinations have not been ruled out, with plans to feature product from in-house operators Cresta and Bridge on the airline’s bookable website.

Carrick said: “Unlike other low-cost carriers, we’ve already got access to beds, car rental and financial services. We can begin dynamic packaging of Cresta beds with low-cost flights.”

 

Juliet Dennis