... the one between agents and suppliers. This is because with just over a month to go until the implementation of the Payment Services Directive 2 (PSD2) (which will prohibit firms from charging customers for paying by debit and credit cards), the support given by operators to their agent partners is becoming paramount.
Abercrombie & Kent was the first to highlight this, kicking off the weekend by announcing plans to up agent commission by 0.5% in an attempt to soften the financial kick in the teeth which PSD2 will deliver to agents come January 13. Eleven other operators wasted little time in joining A&K, echoing similar assurances to those also made by Kuoni, Prestige Holidays, Sunvil Holidays and Experience Travel Group earlier this year.
But while it is welcome news, the clock is now ticking for other operators to come forward. Because although the government might have accused travel firms of “ripping off” clients, as Noel Josephides highlights, this claim is “neither accurate or particularly statesmanly”.
Nor is it particularly helpful. The travel industry is already burdened – fairly or not – with more red tape than many other industries. And with an estimated 95% of all holiday bookings thought to be made by credit or debit cards, travel is likely to be one of the sectors most adversely affected by the new law.
For a small independent agent, operating in an already competitive environment and reluctant to raise prices, PSD2 could prove catastrophic to their margins.
As reported in TTG last week, The Travel Network Group has created a petition to persuade the government to scrap the ban. But governments tend to move slowly and agents need action now. The 14 operators that have come forward to raise commission in support of agents should be applauded. Here’s hoping others in the trade follow suit – now that really would be a royal flush.
