Why we won’t cut commissions: On The Go Tours MD

Why we won’t cut commissions: On The Go Tours MD
By Hannah Edensor


In an industry where bigger is often better, On The Go Tours prides itself on being nimble and niche, and puts travel agents at the heart of its business.

Speaking to Travel Weekly, On The Go Tours’ Managing Director Carl Cross, said cutting commissions to agents is not something they’d consider, admitting they value agents’ relationships too much.

Cross worked for Flight Centre for decades and relishes the independence of a small family owned and operated business now, with just 40 staff.

“We are not beholden to Venture Capitalists or international joint ventures – the senior team make the decisions not the accountants.,” he said.

“Sometimes it means we don’t make the wisest choice for the bottom line but it’s always the right choice for the customers.

Despite headquarters in London, Australia accounts for half of global On The Go bookings, with 70 per cent of those bookings made via an agent.

“Travel Agents are an integral part of our business, and we value their support by paying at a decent commission level,” Cross said.

Cross responded to concerns voiced recently by Travel Counsellors at their annual conference regarding reductions in commission by UK-based operators.

“Cutting commissions would only serve to sever that trust and undermine the relationships we have spent years developing,” Cross said.

The tour operator has a few sayings, and one big one is, “We don’t want to be all things to all people”.

Being nimble and agile in destinations and source markets seems to be the formula of On The Go tours and how it has lasted close to twenty years.

It’s quite a liberating approach to business, and parallels the freedom of travel itself.

“We have very modest growth ambitions,” Cross added.

“[We have] no desire to be another big international ‘adventure company’, there is enough of them and they do a great job but we are very happy being the small niche player.”

The average age of an On The Go tourer is 58, according to Cross.

“We’re not a youth brand, tend to be post children brand.  We are proudly middle class,” he said.

Uncertainty and risk in destinations has affected the business, with their specialisation in Egypt taking a hit in the last decade, forcing them to recalibrate.

While travellers are more cautious, Cross said that recent events have only underlined that anything can happen almost anywhere.

And despite the predictions of travel gloom from terrorist events, On The Go sees it as an opportunity.

“It has meant people feel more confident travelling in a small group rather than always independently,” Cross said.

On The Go’s founders began the company with operations in Egypt, and are known for their specialist knowledge there.

“Our Egypt numbers are no-where near the pre-revolution numbers, but we are really encouraged by the growth we have seen this year,” Cross said.

Despite this, On The Go tours remain the biggest tour operator in Egypt. “We never left. We kept our people on the books the whole time.”

Those numbers are up 75 per cent from last year, which is promising.

“Egypt will always be a ‘bucket list’ destination and travellers are gaining confidence in returning due to flight bans from some European countries being lifted.”

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