Agents stuck in the past: Scoot

Agents stuck in the past: Scoot
By admin

Agents’ continuing mistrust of low cost carriers is the result of an outdated dependence on commission which fails to serve consumer interests, Scoot head of commercial Steven Greenway has argued.

Speaking at the Traveltech conference in Sydney today, Greenway expressed disappointment at the fledgling carrier’s reception from the Australian trade, claiming agents remain wary of LCCs.

“The quite surprising thing is that even though we’ve gone out and said we’re trade-friendly and we have programs with the trade, the uptake has been quite slow,” he said. “Even if the low cost carrier is coming to them and saying I want to build a partnership with you that is mutually beneficial, it’s still very difficult to get in the front door.”

Greenway added he was surprised to have seen no change in the Australian distribution landscape since 2007.

“Everyone still gets commission and I think that’s pathetic,” he said. “You shouldn’t be running your business on the value of the ticket because that doesn’t serve the consumer because [that means] you’re just trying to flog them a more expensive fare at the end of the day.”

He claimed agents could benefit more from selling an $88 Scoot fare because they could build in a bigger margin.

“Get out of the mindset that my commission is going to be nothing because it’s $88,” he urged. “Don’t predicate your model on commission, move into a fee user system, move into a margin system where you’re trying to source the lowest fare according to what the customer wants, and package it up with other things.”

Without change, Australia risked being left behind, Greenway continued.

“Things don’t seem to have budged in Australia while other markets have been quite dynamic,” he said. “A lot of markets that were behind Australia have leapfrogged Australia in the last couple of years.”

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