NEWS TRAVEL WEEKLY BUSINESS CONTINUED FROM THE BACK


airlines introduce these surcharges. These airlines see an opportunity to reinforce their market position by driving consumers to their own distribution channels, depriving them of the ability to compare prices. Europe’s most powerful airlines are jeopardising fair competition.” Ken McLeod, Advantage


Travel Partnership director for industry affairs, described BA’s imposition of a GDS fee as “a watershed for airline distribution”. He warned: “The BA move will have a considerable effect on the UK trade, especially in the regions. “The effect of the charge on mid and long-haul fares may be minimal in relation to the actual cost of the fares, but when it comes to price-sensitive domestic and European routes, the imposition of a £16 return GDS fee has a disproportionate effect. It is devastating for agencies in Scotland, the North of England and, to some extent, Northern Ireland.” He added: “The GDSs have


not covered themselves in glory either.” The GDSs had failed “to adequately satisfy their customers”, he said, leaving travel agencies “stuck in the middle of the dispute”. McLeod warned that many mid-sized and smaller agencies “are being left behind” as large travel management companies (TMCs) conclude agreements with BA to avoid the GDS charge. BA has agreed GDS fee-waiver


agreements with Carlson Wagonlit Travel, HRG and American Express Global Business Travel, among others. Stephen Humphreys, BA head of global sales, claimed: “We’re trying to move forward in consultation with the industry.” But McLeod said: “Nobody


was ready technically or commercially for the change to take place.”


Travel Weekly’s annual business breakfast focusing on training, dev event included the launch of the 2018 edition of Travel Weekly’s Tak


Apprenticeships funds ‘not source of cheap labour’


Companies that abuse the new approach to apprenticeship funding or look only to recoup levy contributions without a strategic training plan will “fundamentally fail”, according to a leading expert.


Andy Smyth, early talent and


apprenticeships manager for Tui UK & Ireland, said: “Some companies who are paying the levy will be looking at their tax bill and thinking ‘how do we get that back?’. They see A plus B equals C. “It’s not as simple as that and


anyone who takes that approach will fundamentally fail. You need to be looking at the opportunities these funds offer, and tailor your training so it benefits both your staff and your business.” Steve Barrass, vice-president of dnata Travel, raised concerns


Tui’s Smyth says ‘don’t ditch the graduate schemes’


Companies should not axe graduate and other training schemes to focus exclusively on apprenticeships, guests were told. Tui’s Andy Smyth said: “Ditching


graduate programmes is the wrong thing to do – you don’t want everyone going through the same process. University is the right thing for a percentage of the population and talent comes from everywhere.” Saga’s Jeannette Linfoot said the company had reinstated


70 travelweekly.co.uk 16 November 2017


SMYTH: ‘You don’t want everyone going through the same process’


its graduate programme after a 10-year break alongside its apprenticeship scheme,


“The apprenticeships funding needs to be used for training and development, not salaries”


that both levy-paying and non levy-paying companies could abuse the system to save money. He said: “The funding needs to be


used for training and development, not salaries, so you ask how companies are viewing apprentices – do they see them as workers or students, and could some companies use them for cheap labour?” Smyth said: “It’s a serious point and there will always be a small percentage who abuse the system. But anybody who wants to use this


BARRASS: ‘We need to ensure levy contributions aren’t just lost’


as a cheap labour model will find that their apprentices won’t stay, so it’s not sustainable.” Barrass added: “Companies


need to come to terms with the environment, and it has forced us to think hard about how we get the best out of the levy. “We would have preferred (to be incentivised with) tax relief rather than having to foot the bill, but we need to ensure the levy contributions aren’t just lost.”


recognising the need to have a broad talent pool. And Abta’s Vicki Wolf said colleges and universities were increasingly engaging with the industry to ensure their courses produced quality candidates. She said: “A savvy student


who may be considering an apprenticeship could also be looking at universities, and the ones that appeal will be those who can demonstrate a strong relationship with industry.” Dnata’s Steve Barrass said companies had “a responsibility” to develop relationships with educational establishments in areas where they had a strong presence.


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