News

ADVANTAGE Travel Centres is reviewing its supplier strategy as members are warned they can no longer "piggy back" on others.

Speaking at Advantage’s first one-day bite-sized conference in London, new managing director John McEwan told more than 140 delegates Advantage will continue to come under pressure over tiered commission as all suppliers look to cut their distribution costs.

"The challenge is to decide who we are working with and to get behind them. We have to demonstrate we add value.

"We have a starting point that is better than our competitors. Over the next few months we will be looking at our supplier strategy and tailoring it, making sure we work with people we want to work with."

The consortium works with 130 suppliers, although it would not give details of the number it is looking to cut.

Marketing director Colin O’Neill said it was a "critical time" for Advantage, as operators look at agency commissions as part of their cost-cutting strategies.

Head of commercial Julia Lo Bue-Said warned the trade not to underestimate the strength of the group and its ability to influence member sales.

But she warned delegates: "Members who do not deliver or continue to piggy back on the rest of the group – we can no longer carry you, especially when it is to the detriment of the majority of our members. Our Business Travel Focus Group is just one example where members have formed a cohesive buying group – delivering their commitments."

Lo Bue-Said said the number of operators it works with is important for delivery.

"Delivery is crucial – in fact it is critical if we are to sustain current commission levels," she added.

Back to top