Budget Travel announced today it plans to cease taking bookings through travel agents from the end of December.
Instead the company will concentrate on dealing directly with the customer via its shops, call centre and online.
In a statement released today the company said it has written to some 600 travel agents across the country advising them of its decision.
The company will terminate its business with some agents immediately, while the remainder are being served six months notice.
At the start of the year Budget Travel halved the rate of commission it paid travel agents from 10 per cent of the cost of a holiday to 5 per cent.
Budget Travel managing director Eugene Corcoran, said the move to do terminate all business with travel agents follows "an exceptional performance by the company’s directly owned channels over the past six months".
"Unfortunately when it comes to providing low-cost holidays, travel agents have become part of the problem rather than part of the solution," Mr Corcoran added.