Med Hotels has dropped its status as principal and will return to acting as an agent from July 21. As Travel Weekly reports, the bed bank is blaming agents for booking on price alone. The bedbank's commercial director Carl Burrows said agents would rather save their clients a couple of pounds than make sure they're booking with a principal.
It seems there is still some confusion in the trade over the issue of principal liability. That's why there's a need for a standard code of practice across the industry. If action isn't taken, agents could get caught out if a client's holiday goes wrong.
Do you book on price alone or look for bedbanks who act as principal? Do you think there should be a code of practice?
Comments (5)
A quick tip for agents from HotelConnect: if you're confused over the issue and responsibilities of principal status, you should up your liability insurance now (or get some in place if you haven't already)!
In most cases, booking with someone who isn't a principal means that they have no obligation to health and safety and you, the travel agent, become responsible if anything goes wrong. In most cases, you'd have to deal with an overseas hotel if your customer were to have any issues, accidents or complaints. And why am I saying "in most cases" - well, because as usual it's not as clear-cut as that, and there's plenty to muddy the waters.
If you want to keep it simple, and have a clear-cut message from your accommodation-only supplier stating what you get when you book, you should vote at www.agents.hotelconnect.co.uk/vote - and we'll start talking to all the suppliers with the aim of achieving a clear Code of Practice, so you can make your choices and book securely and with confidence.
Posted by Ian Ackland | June 19, 2008 11:48 AM
Posted on June 19, 2008 11:48
I don't agree completely with Carl about "agents booking on price
alone". Sure there are still agents for which price is the most
important factor, particularly in the current economic climate, but I
think he should be giving agents more credit. At getabed we have a
strong following from loyal agents whom we have worked with for many
years, that know that whilst we are competitive on price, we are not
always the cheapest, but they are assured that the service and support
they receive is second to none. They also know that because we don't
have the distraction of selling to the public we can concentrate 100%
on them and their needs.
I do however agree there is still confusion amongst some agents on the
whole issue of principal liability and I believe a standard code of
practice would help and would even out what is not currently a level
playing field.
Posted by Andy Winstanley - getabed.co.uk | June 19, 2008 9:03 PM
Posted on June 19, 2008 21:03
Valid points made by both of you there so thank you.
Yes, agents must remember that the cheapest accommodation is bargain basement for a reason and certainly one of the savings made by suppliers can be on service and protection should things go wrong.
Any agent wanting to use accommodation-only suppliers on a regular basis is best recommended to make sure they enjoy the fullest protection possible under whatever scheme is chosen. It may drive pricing up a little but it will let you sleep easy at night and also give you another USP to close the client with.
Posted by Ed Robertson | June 20, 2008 12:08 PM
Posted on June 20, 2008 12:08
At somewhere2stay we talked at length to agents about this. Some insisted on trading with us as Principal. Others where keen to gain a small saving from trading with us as the agent. So we offer both. Easy.
Naturally, we recommend principal status and we are saddened to see Med Hotels have taken this route as essentialy it undermines the whole industry.
Regardless of how you book with somewhere2stay, you'll still benefit from high levels of service and a dedicated sales team whilst your customers get excellent accommodation and a 24 hour helpline.
Posted by Kevin Currie | June 23, 2008 10:47 AM
Posted on June 23, 2008 10:47
I just wanted to say that I am absolutely devastated by Medhotels decision to drop Principal Status. I have used their products regularly over the last 12 months and always found the prices to be very competitive as well as having some of the best availability.
They blame "price conscious" agents for their decision but they have to understand that getting the best deals at the best price is what wins business in some circumstances. Certain clients only have one thing on their mind, "who can get me this product the cheapest" and are not interested in the benefits of service both pre and post holiday.
I myself have my clients protection and wellbeing firmly at the forefront of all the bookings I do. Yes, I try and compete on price, who doesn't but I certainly don't want to leave myself, as a small business trying to thrive, open to Court Proceedings. If I was selling my own product that may be different but as an independent agent, selling 3rd party products I have to protect myself also.
I am sure that most agents would gladly take the option of adding a £5 levy per accommodation booking and take confidence from the fact they have secured their client a quality product, at a good price with all liability covered.
Regards
Steve Heaton
Explorer Travel
MANCHESTER
Posted by STEVE HEATON | July 1, 2008 9:47 AM
Posted on July 1, 2008 09:47