Le Meridien Mulls Commission Increase For Travel Agents

Bhisham Mansukhani - Mumbai

Leading boutique hotel chain, Le Meridien, might reverse the trend of reducing agent commissions, according to Russel Sharpe. In an exclusive to Express Travel & Tourism during the annual marketing and sales roadshow in Mumbai, Russel Sharpe, vice-president sales Middle East and West Asia, said the hotel company perceived the current, fluid crisis as an opportunity to encourage travel agents to sharpen their focus on selling more room nights and increasing commissions for agents is one of the strategies being considered currently.

"I have received some disturbing feedback from agents about reductions in commission remittance from airlines. That, to me, is an opportunity therein to encourage travel agents to focus on selling more hotel room nights. We are therefore considering an increase in agent commissions along with additional incentives, to promote certain new properties in our network. We would like to drive some serious business into Kuala Lumpur. I have negotiated a special rate for the Indian market, which is 30 per cent below the international rate. We are willing to consider an approach that will increase room night sales on the outbound segment," Sharpe revealed.

"When demand outstrips supply, it's easy for some hotel companies to forget their partners in the trade who supported them during tough times in the aftermath of September 11 and SARS. Travel agents were the saviours. There were some notable corporate houses that helped us through that phase with unwavering loyalty. Higher RevPARS at this point does not make them a dispensable lot. In India, we have a network of 200 agents in Delhi and Mumbai and their efforts need to be recognised," Sharpe stressed. Le Meridien received over 17,000 room nights out of the Indian market combining leisure and business travel for 2004. The company has witnessed a growth of between 35 and 50 per cent in the last seven years that Le Meridien has had a marketing and sales presence in India. "The agents have a hard job and we recognise that. Increasing commissions could be a great way to cement our relationship with them and we could take a decision on the same in under six months," Sharpe said.