Flight Centre accused of underpaying staff, ‘ripping off’ customers and ‘cult-like’ work culture
Flight Centre is under fire after an ABC investigation has raised questions about the way agents are paid and its ‘cult-like’ work culture.
Through talking to dozens of existing and former staff members, ABC Investigations has found that Flight Centre agents are encouraged to mark up some flights from anywhere between $30 to hundreds, even thousands of dollars.
“Say the flight was $1500 — they would mark-up and say ‘oh the flight is $1800’. Or if it’s a huge business class flight they would mark up a couple of thousand,” Olivia Little, an ex-Flight Centre employee told the ABC.
The retail travel giant is also being accused of motivating their staff to add these markups with “low and confusing” methods of paying their staff.
The ABC’s report put agents’ base wage at $33,500, which is almost $4000 lower than the minimum wage.
However, it is also mentioned that if staff fail to make enough commission over a month, Flight Centre will top up their pay to bring them in line with minnimum wage.
A Flight Centre spokesman told Travel Weekly that the agency strongly denied the allegations the ABC put to them.
“It’s disappointing that these allegations have been aired publicly but it has also highlighted the need to move to a simpler and easier to understand pay model, which is what we are doing currently via an Enterprise Bargaining Agreement,” the spokesperson said.
“The EBA is reliant on us ensuring that our people are better off overall and we have already made this commitment to them.”
Flight Centre has also denied “excessive marking-up”, stating that a central team in Australia proactively monitors margins on individual transactions and action is taken if the margin earned is considered excessive.
“As outlined in our philosophies, we strongly believe in a fair margin and we monitor this proactively,” the spokesperson said .
The report also slammed Flight Centre’s “boozy ‘buzz nights'”, calling them a “pay-off for the long hours and low pay”.
Little told the ABC that employees are required to attend monthly events in pubs or restaurants to celebrate those who have hit sales targets.
She said it was also a chance for new starters to be introduced to the group.
“In my area, when you were introduced, you either had to tell a joke, tell a funny story — which usually had to be quite dirty — or you had to flash. Not men, women,” she said.
“You’d have men in the back row howling like fools.”
Flight Centre told the ABC it was not aware of these allegations and have not received any complaints of this nature.
“This would be completely unacceptable and immediate action would be taken.”
The investigation also took aim at Flight Centre’s annual Global Gathering, labelling it as a ‘carrot’ for staff throughout the year.
“We believe we have a very strong and positive culture, which is generally celebrated and has in fact led to us winning a number of awards,” the Flight Centre spokesperson told Travel Weekly.
“Many of these awards are based on our people’s feedback.”
Email the Travel Weekly team at traveldesk@travelweekly.com.au
-
Latest comments
Latest News
Voyages celebrates 40 years at Uluru with two new immersive experiences
No plans for celebrating your 40th this year? Here's a hot tip from us.
SkyDeck: The inflight entertainment you could never have imagined
Forget those external cameras you can live stream while in the air... With SkyDeck you can check it out for yourself.
Second Boeing whistleblower dies of ‘mystery infection’
Joshua Dean died from a fast-growing mystery infection on Tuesday.
Aussie winners of American Airlines ‘Sell Your Way to the USA’ announced
Show me the money! For the winners, Sell Your Way to the USA was worth getting involved in.
ANZCRO celebrates 30th with special edition of iconic New Zealand Book
Choice bro! ANZCRO celebrates its 30th with a special edition of its iconic New Zealand Book. Chur!
Room to move at Cairns Harbourside Hotel with ‘spacious’ new family package
Moody teens can eat two-minute noodles while younger brothers and sisters get to eat free with mum and dad. Win, win!
A&K unveils lavish around the world wildlife adventure in private jet
The kind of holiday that if you need to ask the cost, you probably can't afford it.
Flight Centre and Reforest hit one million trees target early
Nice one Flight Centre, we think you've earned an early Friday knockoff.
New cruise options spearhead stacked APT 2025 program
Just in case you thought you were running out of cruise itineraries, APT's here with a fresh batch.
Travel Weekly announces a new team to helm Australia’s No.1 travel trade title
Some shameless self-promotion from us, but we thought you needed to know who's bringing you the news.
IHG reveals plans for Brisbane’s first Kimpton in 2028
Just another reason to book that trip to Brisvegas. But don't jump the gun, it's not open until 2028.
Cruiseabout’s first store in five years opens in Perth
Perth gets a break from being behind the rest of the country with the addition of the first Cruiseabout store.
ATAS complaints process acknowledges non-economic loss
A High Court case win over 'disappointment and distress' on a cruise gone wrong prompts ATIA complaints change.
Cunard previews new Queen Anne
Yep, this one does exactly what it says on the tin.
Bunnik Tours unveils latest expansion to Iceland
Just as the Icelandic vikings did many years ago, Bunnik is expanding into new territories.
Australia’s first glamping retreat turns 25
25th anniversary gifts usually come in silver. Ours comes in the way of a news story.
Embrace the journey: Traversing the world with the Shokz OpenRun
If you’ve been on the wrong side of a final call in the airport, or missed the stop on rail journey, it might be time to invest in a pair of Shokz OpenRun headphones. Originally marketed as headphones for fitness fanatics, runners or cyclists with a keen to steer clear of a prang with a car, […]
Tourism Western Australia MD Carolyn Turnbull departs
Turnbull hints her new role will see her staying in the tourism and hospitality industry and who can blame her?
DriveAway launches Brit-Euro Blitz campaign
If agents can put the foot down quick enough and get involved, there are some great prizes to be won.
Fly and Stay Free with the Great Southern
Unlike those dodgy scam phone calls you're getting more and more of, there's no strings attached to this deal.
Sober travel and TikTok guide Australian Gen Z trips
Can you call it a sober holiday if you enjoy a few glasses of red on the flight? We think yes.
Travel DAZE Exec Agenda REVEALED: top execs to speak on airline competition
As the industry reels from Bonza's implosion, it is more important than ever to ask the big questions.
TTC: Deals are driving up demand for September trips
The latest market research from TTC Tour Brands shows interest in international leisure travel remains high for 2024, with 77 per cent of Australians over 18 still planning trips this year. Notably, 28 per cent of those travellers are eyeing September for their journeys. Europe continues to be the most popular destination, with 68 per […]
Skroo says Rex will need deep pockets to fill lost Bonza slots
The door is open for Rex, and anyone else who wants to launch a regional Aussie airline...
Sno’n’Ski Holidays unveils 2025 mega famil to Colorado!
Let the games begin - this is certainly not a famil that you will want to miss!
Walk Japan launches Kyoto: Mountains to the sea walking tour
There are two types of people, one who enjoys walking on holiday and another who enjoys sipping Mojitos by the pool.
Which destination had a 48% boost in bookings following 10 MILLION TikTok views?
Here's a clue: it's not Malabar Beach.
Asher Telford appointed General Manager of SeaLink Whitsundays
Telford has plenty of reasons to smile after SeaLink doubles down and makes him GM after buying his tourism operation.
Qantas ‘working urgently’ to fix app data leak
Qantas is looking into customer reports that passengers have this morning been able to access other passengers’ personal information on the airlines app. X user Lachlan posted that he was able log into different accounts every time he opened the app. My @Qantas app logs me in to a different person each time I open […]
Hilton Expands Presence in North Queensland with the signing of Hilton Garden Inn Townsville
Heading to a North Queensland Cowboys clash? Hilton Garden Inn Townsville is set to open, but not until 2026.
Rail Europe ANZ: making dream journeys come true
Rail Europe's running a lottery! You're not going to win millions, but you might just snag a free holiday.
UPDATE: Bonza hole deepens as administrators investigate financial affairs
Administrators dig deeper as struggling airline unlikely to be revived.
Revamped Wailoaloa Beach hotel opens as Crowne Plaza Fiji Nadi Bay Resort & Spa
Crowne Plaza Fiji Nadi Bay Resort & Spa is open and ready for bookings after the first phase of a multi-million-dollar transformation. Part of IHG Hotels & Resorts’ premium collection, the transformation has seen the completion of 106 guestrooms showcasing contemporary interiors reflective of the premium Crowne Plaza brand and is a first for the […]
Nielsen Data reveals brands spending big to attract Aussie tourists
Trip A Deal, Virgin and Ignite Travel walk into a bar, blow their cash on travel advertising instead of the pokies.
Kamalaya Koh Samui clinches clutch of wellness awards
Kamalaya Wellness Sanctuary & Holistic Spa has so far clinched five prestigious awards in 2024, including being inducted into the ‘Hall of Fame’ at the World Spa & Wellness Awards in London. Founders of the Koh Samui sanctuary and spa John and Karina Stewart expressed their heartfelt gratitude for the awards. “We are profoundly honoured […]
Jetstar offers 200,000 return for free flights to celebrate 20th anniversary
Jetstar hits 20 and everyone else gets the presents with free return flights to domestic and international destinations.
This has been going on for 20+ years! You had to mark up high because the pressure to hit your cost of seat and monthly target was so high you’d lose your job if your performance was below standard. I’d see consultants at buzz nights drowning their sorrows when failing to achieve and felt like they were in the outta. It was a viscous circle..because the pressure the following month was then much higher.
I got out because the flirty culture and ‘single social circle’ nearly cost me my marriage.
But let’s be real here..most sales roles have similar expectations..higher commissions..more bonuses….more accolades.