The former chairman of the Council of Australia Tour Operators, Simon Hills, has created a new network aimed at providing travel agents with nett rate product from overseas suppliers.
Maestro Travel is the brainchild of Hills, who also owns Icon Holidays, and John Morley, the former chief executive of Kirra Holidays.
It will effectively cut out the “middle men”, Hills said, and give agents control of their margin.
Pricing will be competitive against any direct internet booking “and certainly against current wholesale pricing”, he said.
But the move risks raising tensions between Hills and the Council of Australian Tour Operators (CATO) with Maestro essentially encouraging member agents to cut out the traditional wholesaler and book instead through Maestro, via Destination Management Companies (DMCs).
Agency chain head offices are also likely to view the launch with irritation as it will provide retailers with another alternative to preferred suppliers.
Hills said Maestro will initially provide product for 28 destinations through contracts with 20 DMCs. All product will be provided to the agent at nett rate.
Other deals are expected as Maestro looks to add seven more destinations to its portfolio.
It will target, through invitation-only, a nationwide group of 150 agents over the next three to four years. Between 10 and 20 have already signed up, double the expected number for such a young enterprise, Hills said.
He said membership will be limited to one agency per postcode, suburb, shopping centre or country town.
No branding is necessary and members will not be required to change their existing agency franchise agreements.
