Super agency! How the retail travel business model can evolve in a market with zero base commissions. (Cover Story).(Cover Story)(Directory)

Travel Agent, April, 2002 by Holly, Tricia A.

When Delta Air Lines eliminated base pay on March 14, it set off a chain reaction as other major U.S. airlines matched the move. As they have done nearly every time carriers have cut or capped pay, many frustrated travel agents protested the airlines' action. But to other agents, the end of airline commissions came as no great surprise. Indeed, it was Delta that first capped domestic commissions at $50 seven years ago, kicking-off an industrywide shift away from the existing compensation system for agents.

While a zero-commission system may force some agencies out of business--namely smaller shops that still depend on revenue from airline sales--it does not threaten the future of the entire retail community. What it may change, however, is the way agents shape...

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