Budget Travel has announced a €1 million advertising campaign to counteract a threatened boycott of its products by travel agents.

The tour operator has run into opposition over plans to halve the commission it pays travel agents for selling its products. Budget Travel says that, from January 1st, it will pay just 5 per cent commission.

The operator maintains that the growing trend by airlines to fly into traditional charter destinations has forced it to address its cost structure. The airlines, such as Ryanair and Aer Lingus, were paying little or no commission for sales of their products, said Budget Travel managing director Mr Eugene Corcoran.

The new campaign, which will commence on Sunday as the travel industry enters its busiest six weeks of the year, is being launched as Mr Corcoran alleged there was "increasing evidence that some travel agents are refusing to give customers information" on its products.

Budget Travel is the largest player in the Irish tour operator market, claiming a 40 per cent share. It has sold more than 400,000 holiday packages this year.

"The public need to know that many travel agents are effectively trying to promote alternative, more expensive holidays simply because the relevant tour operators paid the agents a high commission," said Mr Corcoran. "We simply want customers to have a choice."

Travel agents maintain that their costs are rising and that they cannot absorb a 50 per cent cut in commissions. It remains to be seen how many travel agents refuse to handle Budget Travel products.

Any organised boycott is unlikely as it would leave the sector open to investigation by the Competition Authority.