travel delegates hear from industry experts at the British Museum. Lee Hayhurst reports


Rissbrook urges agents to shout about their value


Travel agents were urged by business travel specialist Anthony Rissbrook to do more to talk up the value they offer to combat moves by suppliers to go direct.


The chief executive of Hillgate


Travel said: “We need to get across that our sector, in particular, can deliver higher yields. The people likely to spend most are business travellers.” Rissbrook said “constant noise”


from suppliers about breaking up the distribution system should be countered. “We are strong supporters of the


GDSs (global distribution systems) and believe they will move to keep up with the times in terms of the distribution model,” he said. “Our industry needs to be proud


of what it achieves.” He welcomed changes in the


corporate travel sector which has seen agents increasingly charge clients for their services rather


than rely on suppliers’ commission. But Rissbrook warned that a


recent rise in override rates from suppliers who appreciate the benefit of promoting their product through third parties had reversed that trend. “When agents get to a position


where well over 50% of income comes from suppliers, that will change and they will have to charge again,” he said. “Clients have never had it so


good in terms of fees, but at the end of the day they have to pay somehow.” Hillgate Travel has “made a success” of payment term changes by airline industry body Iata that saw agents in the UK having to pay


“We need to get across that our sector, in particular, can deliver higher yields”


Survey finds 73% are upbeat about outlook this year


A survey of the 300 delegates who attended the 12th annual Barclays Travel Forum found optimism remains high in the sector. Nine in 10 (90%) of


respondents said they expected their business to grow this year, up from 83% a year ago. Three-quarters (73%) were confident about the outlook for their businesses this year, also up on last year’s figure of 67%. Regions expected to see


increases in bookings this year were Asia and Europe, while North America and Africa were expected to see decreases. Cruise was tipped as a sector


RISSBROOK: ‘Our industry needs to be proud of what it achieves’


fortnightly rather than monthly. He said the change to Iata’s


Billing Settlement Plan had been one of its ‘five big risks’ but the firm had been able to get its customers to pay it more often. Rissbrook said all agents will have to stop offering credit as Iata’s aim is to bring in weekly remittances. “Our businesses cannot operate as a bank,” he said.


‘Strong airlines keep fares low to hurt rivals’


The benefit of lower fuel costs is being used by budget carriers to keep prices down and put pressure on less-efficient airline rivals, the forum was told. Deloitte’s Graham Picket said although airline passenger numbers were rising, margins had not seen a comparable lift as competition and overcapacity suppressed prices. Aviation consultant Jonathan Strickland


said carriers such as Ryanair were using their considerable cash reserves to put pressure on rivals.


He said: “In some markets there certainly is


overcapacity. That’s forced prices down, but lower prices are a double-edged sword as much of the benefit is given back to consumers. “Ryanair can do that with the cash pile they have


to put pressure on their competitors. I do not think we will see prices going up. “The best-managed airlines are going to be


ultra-focused on operating costs and putting pressure on those airlines which are much weaker and not as well financially managed.” Christine Ourmières-Widener, chief executive of


Flybe, said it would reduce the size of its fleet as it was in “stabilisation and consolidation mode”.


LEE: ‘The majority of businesses are confident about prospects’


18 May 2017 travelweekly.co.uk 71


that will see growth, while Brexit, followed by exchange rates, topped the areas of most concern for respondents. Chris Lee, director and head


of travel at Barclays Corporate Banking, said: “There’s plenty for the travel industry to contend with at the moment, and it was great to hear from so many key players about the opportunities and challenges facing the sector. “The survey results are very


encouraging, as they show that the vast majority of businesses remain confident about their prospects this year.”


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