Agent relationship concept interesting but the industry cannot survive in an 8% commission environment

ACTA considers the “agent concept” advanced by Nolitours to be interesting but remains firmly convinced that the retail travel sales environment in which its members operate cannot survive in the context of an 8% commission. Moreover, it is deeply concerned about the spillover effect that this decision is beginning to have.

Philippe Sureau, Transat President Distribution

Before taking a position and given the concerns expressed by its members after Nolitours announced it would cap commissions at 8%, ACTA made an effort to better understand the strategy that led to this action and therefore invited Philippe Sureau, Transat President Distribution to meet with the members of its Quebec Regional Council on September 1.

Clearly, ACTA's mandate is to represent the industry and defend its interests in order to promote the creation and maintenance of commercial activities likely to foster the industry's development. Our mission is not to get involved in members’ business negotiations, however we do not believe that a widespread 8% commission can be conducive to such development.

Jean Collette, Chair of the ACTA Quebec Regional Council

“The question we are asking ourselves is this: The strategy arising from the agent concept is designed to clean up Canada’s travel sales market, but is it necessary to take aim at the already slim profit margins to apply this new and, moreover, useful approach? Why choose to substantially penalize the entire retail sales network, which represents, by far, wholesalers’ main product-distribution channel and therefore their main partner?” commented Jean Collette, Chair of the ACTA Quebec Regional Council.

These issues are important to ACTA. We question the value of the recent developments and we ask the owners of products to study and propose alternatives that would not have the dramatic, penalizing effects that our members are anticipating and already seeing.

“In an industry where interdependence between supplier and distributor is still vital, both have a fundamental responsibility to create and maintain an environment and context where everyone can find balance and benefit and where profit margins are viable for all. This condition is essential for the network’s sustainability,” concluded Michael Merrithew, Chair of ACTA.