The Association of Train Operating Companies (ATOC) has announced new commercial arrangements which will apply to ATOC-licensed Travel Agents (TAs) and TMCs from April 1 2016.
This announcement follows a six-month period of consultation between senior representatives of the TA/TMC community - drawn from the membership of the GTMC and the Advantage Travel Partnership – and of the train operating companies (TOCs), supported by ATOC.
The agreement will see the current commission arrangements extended for a further three years, until March 31 2019, then renewed annually on a three-year rolling basis.
The deal means TMCs will have a three-year view of commission rates when they enter into new agreements with their corporate clients.
During the consultation, TMCs and TOCs also identified a number of initiatives, which could be used to “target specific opportunities to drive mutual growth”.
All parties have established a liaison group, which will meet two to three times a year and cover a broad range of industry issues, such as technology, product development and training.
ATOC head of third party retailing Nick Bamford said: “We are very pleased to have agreed this new rolling deal with the GTMC and Advantage, which we are confident will bring longer term stability and new growth opportunities for both TOCs and TMCs."
Capita Travel and Events Raj Sachdave MCIPS - head of auxiliary partnerships & innovation, said: "ATOC’s announcement is great news for the supply chain, buyers and travellers. The commission agreement offers travel management companies stability and an opportunity to invest in longer term technology and service innovation to improve experiences for the buying fraternity, travel bookers and ultimately travellers."
Ken McLeod, corporate director, The Advantage Travel Partnership said: “This is a very positive step for both TMCs and TOCs, and provides an excellent base on which to build and continue relationships, whilst growing business for all stakeholders.
“This has been a long journey for all of us, and I would like to thank the GTMC for their lead role, and to ATOC, in finalising this initiative, and we look forward to Advantage participating in the new TMC-TOC Liaison Group moving forward.”