The recession has caused recruiters to be flexible on fees rather than enter into an all-out price war.

Nina Johnson-Bennett, managing director at Management Search Executive, told Recruiter: “Price war or no price war recruiters are already showing flexibility in their fee structures; professional recruiters will think twice before they reduce their rates to such a degree to compromise their service standards. Clients would prefer to receive added value rather that a few points discount.”

John Tolmie, managing director at AA Appointments, says that price wars are specifically arranged to stimulate business and usually occur when operators have over capacity that they need to get rid of.

“Most operators have been very careful with their allocations for 2009 with many actually decreasing capacity from 2008. If a price war does break out then it is likely to be short and very specific.

Travel recruiters (like all recruiters) are under pressure with fees. But so far, they have managed to keep their nerve and maintain fee levels.”

Julia Feuell, managing director at New Frontiers, says that recruiters need to respond to and be sensitive to market changes.

“We have already created the credit crunch recruitment service and unbundled recruitment fees. Clients can now pay for parts of the recruitment process such as CV shortlisting, testing, interviewing, compliance etc or ask us to handle the whole project for a percentage fee. We are also offering our clients government funded NVQ training and director coaching. You can’t solve new problems with old solutions.”

Ian Brooks, director at Gail Kenny Executive Search, adds: “Airlines, and especially charter airlines along with their large tour operator owners have cut capacity substantially in order to avoid a price war. Their strategy so far appears to be working, with average prices for holidays showing a small increase but with volume clearly reduced.

“Travel clients are looking at different ways to cut their HR and recruitment spend. This is partly being achieved by the overall reduction in vacancies, especially at the lower level jobs. These lower level jobs are also easier to fill through the use jobsites or their own sites to advertise vacancies on. However, at senior management levels these tools are far less effective and the services of a recruitment firm deploying discreet and carefully targeted head-hunting techniques remain very much in demand meaning that fees can be maintained.”