News

THE Independent Travel Agents Alliance has contacted the Office of Fair Trading after continuing reports from members of operators undercutting agents’ prices online.

Worldchoice chairman Colin Heal discussed the issue - known as ‘margin squeeze’ - after ITAA members said they still struggled to compete with operators’ online prices.

ITAA member Midconsort has already claimed operators are breaching a gentleman’s agreement not to undercut agents’ prices by more than 5% (Travel Weekly February 23).

In some cases it is claimed operators have discounted prices online by 10%-20%, effectively the cost or more than the agents’ commission.

Heal said the OFT will investigate cases where operators discount more than an agent’s commission level.

He is already looking at two cases and urged agents to report any instances.