The private war conducted by Flight Centre on major airlines such as Singapore Airlines to force them into higher fees will only quicken the demise for the traditional brick and motor shops. With empty seats in abundance even with the current deep discounting, this policy will likely drive consumers into the hands of airlines and other suppliers, especially as consumers realise their choice at Flight Centre will be dictated by the commissions the company receives from airlines.
More than ever, consumers want choice and they want to know that they’re getting the best value for their choice. With Flight Centre staff now directed to avoid certain airlines such as Singapore Airlines consumers will come to question the honesty and integrety of Flight Centre and whether they truly have their best interest at heart.
The traditional agent model is not sustainable and will continue to result in more closed shops, especially in tougher economic times. Bullying airlines to pay higher commission may increase revenue in the short term but will only drive the demise of the traditional shop. What the business needs is innovation, not short sighted tactics that place the customer worth off.
This stouch with airlines will only push more people online to get the best deal possible and the freedom to choose thier airline of choice.
Disclaimer: Amplify works with Webjet.