Operators unmoved by price parity call Juliet Dennis


The big three tour operators show no sign of backing down on the issue of price parity despite a homeworker’s open letter attracting widespread trade support. Lynne Cuthbertson, of The Big


Surprise, part of the Merlin Travel Group, urged Jet2holidays, Tui and easyJet holidays to offer price parity with consumers so agents did not appear to be “ripping off” customers or have to reduce their commission to achieve a sale. The issue has been a bugbear


for years among independents who claim the big operators could attract more agent sales and loyalty if they aligned their online and trade prices. But in response to the latest


plea, both Jet2holidays and easyJet holidays said they had no plans to change their pricing policies. A Jet2holidays spokesperson


said: “Jet2holidays has operated a successful and transparent pricing policy, both direct and online, for well over 10 years, which is commercially viable for ourselves and for independent travel agents.” An easyJet holidays spokesperson


said: “We’re always listening to feedback from our agents, which has seen us create a clearer commission structure alongside creating the updates our partners want to see via updates to the trade portal.” Tui declined to comment. In the letter, Cuthbertson, who


has been in the industry less than two years, described operators’ messages


‘Tourism taxes are really a tax on tourism businesses’


Ian Taylor


Tourism taxes are becoming “a cost of doing business” as an increasing number of destinations look to introduce levies or increase those in place. Venice introduced a tax on day


visitors at peak times this year, Bali imposed a levy on international visitors from February, Tunisia will extend a tourist tax to package holidaymakers from November, New Zealand will almost treble its International Visitor Levy from October and Edinburgh plans to impose a nightly tourist tax from 2026.


4 19 SEPTEMBER 2024 The Financial Times noted “paying


extra for being a tourist is becoming more common” in an editorial at the weekend and suggested: “For travellers reeling from post-pandemic inflation in airfares and accommodation, this may seem unfair.” But it also noted: “Travellers


bring litter, noise and congestion. High footfall can trample ancient sites and disrupt ecosystems. Taxes charge travellers for these negative impacts and can regulate demand. The revenues can make high- volume travel more sustainable.” Tom Jenkins, chief executive of European travel association


Most of us agents


make 2%-6% at best, just so we don’t look like we’re ripping off our customers


of “we love agents” and 10%-13% commission as “smoke and mirrors”. She wrote: “Personally, I’m tired


of it. Due to the lack of price parity, most of us agents make 2%-6% at best, just so we don’t look like we’re ripping off our customers. Let’s not even mention the countless wasted hours searching across both your consumer and trade platforms.” The big three operators account for 30%-40% of Cuthbertson’s business.


“I would rather know upfront my


commission is 5%, and trust the consumer price matches the trade price,” she added. Cuthbertson told Travel


Weekly: “I’m not asking for more. My biggest gripe is the wasting of time. There has to be a solution.” Established agents backed her


plea. Malvern World Travel co-owner and director Lee Harrison said: “Operators have to realise price parity could give them better sales from agents, clearer loyalty and the ability for agents to upsell their products.” Bailey’s Travel owner Chris


Bailey agreed: “There is not enough discussion around dual pricing. Our Jet2holidays sales are not as high as they could be [due to the lack of price parity].”


Venice introduced a tax on day visitors at peak times this year


Etoa, acknowledged visitor levies are increasingly “a cost of doing business”, although he said: “They’re not popular – extra costs are not good for anybody in an environment where costs are spiralling everywhere.” He argued: “Tourist taxes are not


really a tax on tourists. They’re a tax on businesses. These taxes invariably fall on hotels and are a tax on the margin of those businesses. Local governments are saying to businesses ‘Your clients will pay more’ and ‘We want a share of your profit margin’.” But Jenkins added: “Ultimately,


it’s up to a destination to decide what tax to levy. Tourists will pay


what they choose to pay. They can choose where they want to go.” He urged destinations: “Don’t


introduce taxes at short notice. Contracting can take place up to 24 months in advance. Be aware of lead times.” The UK Hospitality association


has opposed Edinburgh’s plans for a tourist tax, in development since 2018. But industry coalition the Tourism Alliance has proposed a redistribution of tourism revenue between central and local government by introducing local tourism levies and cutting VAT on tourism services and accommodation.


travelweekly.co.uk


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