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‘Commission hike can’t go on’

(30 September 2004)

CONSORTIA bosses should closely analyse what members sell and target specific operators, First Choice managing director Dermot Blastland has said.

Blastland said agents would earn better commission by focusing on two of the major operators – even if it means dropping First Choice. "Focus on two of the big four," he said. "Agents need a clear business strategy on how to survive."

Referring to the row with Worldchoice over a new lower base-level of commission, he added: "We would like them to behave like a focused consortium."

The plea comes as Blastland warned the current commission structure was unsustainable. "We can’t build into our prices never-ending commission because it is expensive."

First Choice’s review of distribution is symptomatic of an industry-wide issue, added Blastland. The operator is looking at "the true cost of every account" across distribution, including spend on training, brochures, incentives, errors, commission and sales.