GTMC complete negotiations with ATOC
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THE GUILD OF TRAVEL MANAGEMENT COMPANIES, the UK’s leading professional industry body for travel management companies, has successfully completed negotiations with the Association of Train Operating Companies (ATOC) for commission payments for travel agents and travel management companies (TMCs), for rail business transacted from July 2010. Following extensive consultation by ATOC with the GTMC, commission has been revised to 4% for bonded TMCs and 3% for unbonded agents, set until end of March 2011. After that date all turnover will need to be bonded and 3% commission will be paid, set for two years until March 2013 with six months notice of any further changes. Additionally, substantial progress has been made in a number of other areas including measures to:- ensure a level playing field for the organisations involved in the rail retailing market- make it quicker and easier for TMCs to claim a refund – reduce costs across the board Both the GTMC and ATOC have also committed to a closer future relationship that will focus on opportunities for mutual growth. GTMC chief executive Anne Godfrey said: “In addition all TMCs will continue to have the ability to make additional charges, such as a transaction fee. We are delighted that ATOC felt able to engage with us to ensure a successful result for both parties.” ATOC commercial director, David Mapp commented “We believe this is a good outcome for all parties and have valued the role played by the GTMC in representing travel agent and travel management company interests. The focus for the next three years now has to be on growing rail sales and we look forward to strengthening our relationship with the GTMC in order to help achieve this.” Ms. Godfrey continued: ‘GTMC members account for 80% of all business travel expenditure in the UK and we know sale of rail tickets is a growth area for TMCs – in our quarterly transaction survey rail is the only form of transport that has shown growth during this recessional period. Rail has also become a foremost consideration for business travellers, this was illustrated in our recently launched manifesto which published the results of a survey of 1,250 business travellers – 70% of the respondents felt that a high-speed rail network should be the priority for Government investment.’ ATOC has said that the move to bonding for all agents reflects the higher risk of failure and settlement default, however, bonding is already a condition of entry for GTMC members. Passengers on today’s inaugural flight were welcomed onboard by the airline’s Italian team who were dressed in traditional Venetian carnival costumes and carnival masks. The airline expects to carry over 44,000 passengers on the service which will operate until 30 October 2010 on Monday, Wednesday, Friday and Sunday from East Midlands Airport. Fares start from just
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