Australasian Leisure Management
Jan 25, 2013

Review recommends commission cuts for Queensland tour desks

Recommendations from an independent review into the level of commission fees tour desk operators charge when taking bookings on behalf of Queensland attractions and tourism operators may well see a reduction in ticket and activity prices.

The review of Queensland's $8 billion-a-year tour desk trade by tourism services consultant Ian Kean calls for a radical overhaul of "price-gouging" and exorbitant tour desk commissions.

Following years of complaints into such practices, Keans review, instigated last January by former Queensland Tourism Minister Jan Jarratt, investigated allegations of commission price gouging on tickets to attractions.

Allegations had persisted that tour desks had been demanding commissions of up to 45% of ticket prices from operators. As tour desks sell tickets on operators' behalf, operators have been wary of defying the demands in case their products stop being soldsuddenly get dropped.

Tourism operators across Queensland believe cuts will make Queensland tourism more competitive at a time when it faces hefty overheads in an extremely tough market with the Australian dollar at a very high level.

They claim pricing for hotels, trips to the Great Barrier Reef or to tourist attractions like Dreamworld and Sea World will be hugely discounted when the changes are adopted.

Queensland Tourism Minister Jann Stuckey said the Queensland Government had accepted all nine recommendations, including a code of practice and abolition of parity pricing, stating that she wanted "consistency and control over charges paid to tour desk operators."

Queensland Tourism Industry Council Chief Executive Daniel Gschwind welcomed the findings of the review, stating "across regional areas of Queensland's tourism industry ... operators felt they had lost control over distribution and bargaining powers.

"In many cases this makes it difficult for these providers, who carry the risk, make the investment and cover staffing costs to make money.

"Many were upset because they had to sell the product, like a trip to the reef, theme park or guided tour, at below cost because the middle man was taking such a huge cut."

However, Gschwind cautions against the Queensland Government setting commission rates, adding "it is inconceivable and undesirable for the Government to step in and say this is how much a commission can be.

"I don't think we should regulate personal transactions, but we should give operators the tools to be in a better bargaining position; methods such as online distribution could provide some measure towards working on a more equitable basis."

Cairns and Port Trips & Attractions Chairman Charles Woodward summed up current dissatisfaction with tour desks, stating "they are overpriced ... some tour desks charge as much as 30% of the ticket in commission ... that is fairly ridiculous.

"We don't want tourists going home feeling like they've been rorted and ripped off."

Australasian Leisure Management Magazine
Subscribe to the Magazine Today

Published since 1997 - Australasian Leisure Management Magazine is your go-to resource for sports, recreation, and tourism. Enjoy exclusive insights, expert analysis, and the latest trends.

Mailed to you six times a year, for an annual subscription from just $99.

New Issue
Australasian Leisure Management
Online Newsletter

Get business and operations news for $12 a month - plus headlines emailed twice a week. Covering aquatics, attractions, entertainment, events, fitness, parks, recreation, sport, tourism, and venues.