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Thursday, September 02, 2010
Leading lights in the travel industry have rounded on online “experts” calling for customers to barter with agents, despite discounting being blamed for the collapse of several travel firms this summer. Travel agents have long objected to Moneysavingexpert.com – founded by Martin Lewis – encouraging customers to haggle agents down, and TTG highlighted the issue after he appeared on Tonight with Trevor McDonald in 2005. Lewis claimed he was a “fan of travel agents” and is as supportive of them as he can be (see comment, below). However, industry figures believe his advice has become more dangerous in a year when discounting has already been blamed – by PricewaterhouseCoopers among others – for pushing travel firms over the edge. One of the most popular articles on the website, saying customers can get discounts of 15%, has provoked a furious reaction from agents. Future Travel homeworker and TTG Face of Travel winner Martin Owens, who posted on the website after the failure of Kiss, said the advice could destroy agents’ livelihoods as they would “make pennies” if forced to give customers 15%. Global Travel Group managing director Dave Clayton said it was “hard to believe” that customers would be able to secure 15% discounts. “Agents can’t afford to sell too cheaply,” he said. “Most agents don’t work on 15% margins. Lewis needs to realise he can’t be an expert on every industry. I think his customers will find he has called this one wrong.” Travel Counsellors chairman David Speakman said there was a danger Lewis would encourage customers to book with firms that were cheap, but not necessarily financially secure. “It would be interesting to ask him how many people who took his advice booked with Goldtrail and Kiss,” he said. “When you are booking a commodity, you always try to get the best price. But when you are booking a holiday, you should make sure that it is delivered properly. MoneySavingExpert commoditises everything.” Worldchoice chairman Colin Heal said the advice was “misguided”. “Cheapness should balance with good standards of service,” he said. “Getting a discount on a roll of carpet or a piece of furniture is different from a holiday. Lewis needs to recognise that.” Moneysavingexpert.com founder Martin Lewis responds to TTG: “I am a fan of travel agents. I have robustly defended them over the past five or six years as the DIY internet brokers have come to the fore. “Whenever I’m asked by people if they should avoid the travel agent and do it themselves, I resolutely say no — if you are going away for seven, 10 or 14 days to an established resort you are likely to get a better deal with a travel agent. “However, specifically in the lates market, haggling does work, and it would be remiss of Moneysavingexpert.com not to tell consumers that fact. If it didn’t, I’d be lynched by my visitors. “I do listen to travel agents and I did make some changes to my advice following the TTG article five years ago. There is also a specific section on the website where travel agents can offer deals for customers. “But if the travel industry continues to work in this way, I will tell people about it. This is an issue for the travel industry and how it sells its products. I’m not setting out to hurt travel agents, just to help consumers get the best deals.”
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