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• Mr Alan Newton of Grass Roots Group 02/12/2011
  

  Now, I can’t comment specifically on Expotel’s commercial practices, but some of the responses I have read, especially from smaller agencies generalising that all ‘large’ agencies are essentially bullies and act inappropriately, are wide of the mark. Besides being potentially slanderous, nothing could be further from the truth. The spectrum of companies that co-exist and operate within the industry have different factors that dictate the commercial models they deploy. Not one vendor is the same size, scale and maturity of the next and the same applies to both agencies and corporate clients. Not all large agencies are bullies and not all small agents are whiter than white.
  
  The rate of commission is a recurring theme. When the HBAA first produced its ‘Code of Conduct’ with guidance concerning the accepted ‘minimum’ rates of commission, the market was very different. To generalise, those agencies that are working with large conglomerates are frequently requested to ‘share’ a percentage of the commission based upon ‘large volume delivery’, whereas SMEs who don’t have large volumes cannot dictate such terms. Depending on the mix of its client base, an agency will face different cost pressures according to the account. The market has matured and professionalised immensely, as have the breadth of services to clients. This has created inevitable commercial pressures for the venue sourcing model; delivering more for less. Therefore, the better agencies focus on value creation, understanding the factors influencing process and educating all stakeholders towards the end goal of delivering ‘profitable’ business. If, through making a process more efficient and eliminating waste (saving time and money), you can deliver a higher margin to vendor partners, why wouldn’t such a partner share a proportion of that increased margin with their agency partner (and client, in some instances) for helping to address a critical issue within their own business? The specific percentage is then down to the individual companies to agree what is ‘fair’ and ‘just’ for the ‘service’ provided. Yes, as agents, we are delivering a service to our vendors as well as our corporate clients and it takes empathy, expertise and hard work to do it well.
  
  If, like Stephen Morton-Prior from Clearwater Events suggests, “as with all large agencies, those that offer the best commission and overrides get put forward to the client!”, it were true that the most lucrative deal secures the business, we would not have many clients remaining due to failure to offer the most appropriate solution. At Grass Roots, we do not ‘dictate’ to our supplier partners what they ‘must’ pay; we have a mature open dialogue concerning commercial arrangements based upon the value we and our clients can add to the process, and it’s considered by both vendor and client we are remunerated fairly. Grass Roots has had vendors offer us potentially lucrative commercial terms to assist in growing their business volume and market share, but they have been rejected because they don’t fit with what our clients require. Grass Roots developed a ‘Best In Class’ approach to its supply chain, based on MICE competency, which was completely focussed upon various clients’ global needs and requirements, not who offers the most lucrative commercial arrangement. Success comes from delivering excellent solutions and service in the long-term, not from trying to make a fast buck.

• Miss Emma Greenfield of Merlin Events 29/11/2011
  

  In 2011 we paid a large amount to advertise within Expotel, to this date we have not confirmed any business or enquiries out of it. In these times we should be offering value and working with clients, not wacking another 20 per cent on their bill because agents are hiking up fees by 12 per cent from the industry average.

• Mr Sylvain Bouteiller of Nexusvenue 24/11/2011
  

  I can only endorse most of the earlier comments. If our clients and the hotels cannot rely upon us to act with impartiality and integrity then we do not deserve to be in business. This stance by Expotel is potentially very damaging for our industry.
  

• Mr Robin Parker of Conference Centre At Church House 23/11/2011
  

  The truth is that if these sorts of commission rates become industry standard it will be the end user client who will pick up the tab. Not just by rate increases, as suggested by Expotel, but by the lack of flexibility we will all have within our rates. We all want to offer value in the current climate but that should be to clients, not to agents with inflated commission rates.

• Mr Simon Thompson of Conferences UK Ltd 23/11/2011
  

  Venues are having a tough enough time as it is during the recession without having 'fat cat' agencies like Expotel trying to hike their commission fees by 100 per cent. It's also a disgrace when these agencies win client and in particular government business and then 'force feed' their clients only venues that are prepared to pay these high commission levels. Where is the service?! What happened to putting the client's needs first? Here at ConferencesGroup we put the client first every time and we work with venues to ensure the relationship is win win, not win lose.

• Mr Stephen Morton-Prior of Clearwater Events 22/11/2011
  

  This is another example of the large agencies pulling their weight and ‘bullying’ hotels and suppliers into higher commission structures. Cost saving is of key importance, however, pushing hotels into uncompetitive commission structures to line the pockets of agencies with high operating costs is ludicrous!
  
  The client is the person who suffers here as suppliers will be forced to hike up their prices to account for the loss in their own minimal profits! And let's face it, as with all large agencies, those that offer the best commission and overrides get put forward to the client!
  
  It's good news for smaller agencies, as our operating costs are smaller and we don’t need to be so greedy in the market place. Small agencies like us like us operate far more competitively and ensure better cost savings to the client in the long run! We can offer a varied portfolio of options to the client and also offer better pricing as we aren’t bullying suppliers into large payouts.
  
  As in the wise story of David and Goliath, size and strength does nothing in the long run...

• Mr Craig Wallace of Royal Society of Medicine 22/11/2011
  

  Can't quite see how independent venues like us could benefit from losing another 12 per cent of our revenue. As stated previous, this doesn't benefit the client, as agents will be incentivised to place business where they get the highest rate, rather than the venue with the best rate, or the venue best suited. What's the expression? "Not in a month of Sundays"?

• Mr Nigel Alden of Grayfriars, Lymington Bottom Road 22/11/2011
  

  Why clients put their faith in agents whose only criteria is how much commission they can get baffles me. We only suggest to our clients the best venues at the most cost effective prices and if those venues pay the industry norm of 8 per cent, that is fine by us. We would rather have satisfied customers who know we will book the ideal venue for their event rather than the one paying the highest commission. That is why they keep coming back to us.
  
  Nigel Alden, Managing Director, Complete Event Solutions

• Colin Porter of Armada House Conference & Events 21/11/2011
  

  As an independent venue operator we are finding we are being increasingly squeezed at the moment. We are having to deal with rising costs of rates, rent, fuel & food prices. At the same time large chain hotels are offering massive discounts and yes venue finding agencies want a bigger cut. If Expotel secure 20 per cent, the danger is this moves the goalposts for the standard rate of commission for all agencies and I'm not sure then what is left for us!

• Ms Marion Rudloff of Business Solutions - Disneyland Paris 18/11/2011
  

  Apparently they have increased it from 15 per cent in April.

• Mr Dan Visser of The Langdale Hotel & Spa 18/11/2011
  

  The industry standard for third party intermediaries such as Lastminute.com is in the region of 20 per cent and I assume Expotel have the view that “if they can do it, why shouldn’t we?”
  In my opinion what will happen is that enough suppliers will agree to 20 per cent for Expotel to continue with the proposed increase in commissions regardless. Many hotels are too focussed on turnover over profit, hence the use of flash sales such as Groupon and Living Social where commission rates are 50 per cent. If all suppliers to Expotel said no and gave no availability to them then they would have no option but to reconsider.
  

• Miss Denise Hudson of The Spa Hotel 18/11/2011
  

  We would not be willing to pay 20 per cent commission, we would agree 8 per cent as previous years.

• Mr Andrew Lund-Yates of Oxford Masonic Centre 17/11/2011
  

  I raised this issue with Expotel a few weeks ago and got pretty much an identical response. I don't see how this helps independents like ourselves when Expotel demands 20 per cent commission.......and on VAT inclusive rates! How do they justify claiming commission on a tax? I got a very waffley answer from Expotel when I challenged this, saying that 'that's the way it has been for many years', but that they 'do have the ability to do work with partners on a net basis also'. I don't mind being identified, and I wish some of the other perhaps well known operators would stand up and be counted on this issue.