Queensland to review tour desk commission fees

The Queensland Government has announced an independent review into the level of commission fees tour desk operators charge when taking bookings on behalf of attractions operators.

Queensland Tourism Minister Jan Jarratt said the review, to be headed by consultant Ian Kean, will investigate allegations of commission price gouging on tickets to attractions.

Allegations persist that tour desks have been demanding commissions of up to 45% of ticket prices from operators. As tour desks sell tickets on operators' behalf, operators are wary of defying the demands in case their products suddenly get dropped. But operators are already facing hefty overheads in an extremely tough market with the Australian dollar at a very high level.

Minister Jarratt said the industry had been reporting desks charging high fees and that the investigation would seek to ensure that tour operators were not being disadvantaged, stating "I believe it's necessary to objectively assess the impacts of commission structures on the tourism industry, having received feedback that some commission rates might be excessively high or not good value for money.

"As we strive for success in 2012, it's important for Government to take steps to ensure unfair practices do not occur and tourism businesses remain as profitable and competitive as possible.

"I think it's prudent to ensure the commission system is fair and equitable not just for operators, but also to guarantee visitors to Queensland get value for money."

Tourism businesses on the Gold Coast say tour desk operators are increasingly demanding 20% or even 25% of the ticket price as a commission, instead of the 15% which used to be the norm.

The Australian Competition and Consumer Commission has already scrutinised practices in the industry but it found they reflected market forces. However the ACCC warned operators that any banding together to demand a set fees would contravene the Trade Practices Act.

The Brisbane Courier-Mail quoted Association of Marine Park Tourism Operators Chief Executive Col McKenzie saying that without any established benchmark for tour desk commissions, tour operators had little choice but to pay up.

McKenzie said demands for commissions of up to 50% of the ticket price had been made. More commonly were demands for 35% "or they won't sell the product".

McKenzie added "tour desk commissions eat at the profit margins of tourism businesses, which can put the viability of some businesses at risk."

The review's terms of reference have been developed in consultation with the Office of Fair Trading and the Queensland Tourism Industry Council.

The review will involve two rounds of industry and community consultation with an issues paper expected to be released in March 2012, and further consultation will occur following the publication of the issues paper.

A final report will be due to government by the end of June 2012.

For more information go to www.tourism.industry.qld.gov.au