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e-travelsite
e-travelsite
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Airlines have lowered travel agents commission from 8% to 5% forcing agencies to attach service fees in order to survive! With more and more airlines developing their reservation system via the internet, they feel that since passengers are booking their own travel via the internet, there's no need to pay travel agencies 8% commissions. Travel agents do more than just book airline reservations, they also book hotel reservations, arrange car rentals, airport and hotel shuttles, put together affordable vacation packages. Travel agents provide a service, and with 800 emergency numbers, they can provide 24 hours worth of vital assistance. For example, if you are experiencing a problem with your hotel, you can't pull up the hotel's website and correct the problem, you either have to call the hotel or a travel agent. Needless to say, you need to speak with a human being. No, I am not against the internet. And online bookings, but I believe that it's a dis-service to slash travel agents commission rates to where they have to attach anywhere from $15 to $30 service fee to survive, yes survive, and I'm not being overly dramatic. Several agencies have closed because of it. Think about it, some of the newer, smaller agencies have overhead, a lease, employees and various other expenses they are responsible for as business owners. One alternative is to restructure by letting agents go or by closing entirely which means unemployed travel agents who can't just get a job at another agency, because the agencies that are surviving may or may not be able to take on new agents. I'm not standing on my soap box screaming "Down with online airline reservations!" Never that, all I am saying is that, yes, the airlines are saving a little money, but at what cost, and will they really pass the savings on to the consumer? Has there been a dramatic drop in air fare since travel agent commission rates have been lowered? Not other than the occasional sale, but that's it. The following airlines as of November 1, 1999 haven't lowered their commission rates:
Midway Airlines at 8% National Airlines at 10% Pro Air at 10% Southwest Airlines at 10% Spirit Airlines at 8% Taho Air at 10% The following airlines have lowered their commission rates to travel agents:
Continental from 8% to 5% TWA from 8% to 5% United Airlines from 8% to 5% Vanguard Airlines from 8% to 5% There are more airlines that have lowered their commission rates, but the above mentioned airlines are widely known and are widely used for domestic travel. |