Russian Travel Digest

TUI Russia Tour Operator has lowered the travel agency commission

Create: 10/06/2017 - 16:38

Ali Mikailov Director of sales management of TUI Russia said about this on Wednesday, October 4. According to him, the minimum commission from October 2017 will be 7%, the maximum - 11%. He explained this decision with the desire to make the agency's policy of the company as transparent as possible, having canceled the best price and promo tariffs.

"According to our calculations, 7% will receive agencies that work with TUI rarely, from time to time. While our regular partners, whose cooperation we value and support, will be able to receive an increased percentage of sales. When a certain sales plan is reached, the travel agency automatically switches on the next level and receives an increased percentage. The starting commission for franchising agencies is 9%", - explained A. Mikailov.

It should be noted that the tour operator reported about decrease of minimum size of the travel agency commission in April, but a decrease from 10 to 7% occurred simultaneously with an increase of the upper level from 13 to 14%.

Now the travel agencies consider promo tariffs as one of the key problems in modern tourist business. And they welcome any step taken by the operator to abandon this practice. On the other hand, the agencies which received a maximum TUI commission before October are disappointed. "At the beginning of the year all operators cut down the commission, we reacted to this with understanding. Why is it necessary now? If earlier our commission was 14%, now it’s only 9%", - said the representative of one of the Moscow travel agencies.

According to observers, the tour operator had to do it dui to inability of VIM-Avia airline to fulfill its obligations to transport tourists. According to Taras Demura General Director of TUI Russia, the company's losses amounted at least $ 2 million.

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Russian Travel Digest
Russian Travel Digest is weekly e-newspaper about Russian tourism and travel trade news, analysis, market data and company information. Most of materials are translated from Russian into English from professional and general newspapers, magazines and electronic media. Additionally, it gives detailed information about different tourism organizations on Russian travel market. Upon subscription, registration required.