TREASURY has been
looking into its policy for
PCOs, and concerns have
abounded in the industry about
the likely implications should
it prevent PCOs from earning
commissions when organising
public-sector events.
Just last year, Treasury
implemented a new national
travel policy framework
that did away with all TMC
commissions and override
agreements, in an effort for
complete transparency and
nett fares. According to the
regulation, TMCs are entitled
to a management fee and any
commissions that might be
paid are to be reimbursed to
government.
The knock-on effects of
eliminating commissions
are substantial, and many
professional conference
organisers have baulked at
the notion of not earning
commissions. Says
Riedwaan Jacobs, md of Ilios
Conferences: “Commissions
allow us to keep our fees
reasonable and affordable.”
He believes that steep
management fees would drive
associations and corporates to
organise their events in-house,
and this could potentially
result in a drop in standards.
Rudi van der Vyver, ceo
of SAACI, explains: “We are
assisting Treasury to avoid
unilateral decisions that could
affect the entire industry.”
