A game of margins: consolidators can provide the profits that have disappeared with airline commissions and aid the evolution of travel agents. (Airlines).

Travel Agent, May, 2002 by Shannon, Darren

Delta Air Lines' March 14 decision to eliminate base commissions was an insult added almost as an afterthought to injuries already sustained by travel agents. Earning an income from air sales had become increasingly difficult since 1995, when Delta led the first round of airline commission caps, and it's now nearly impossible. Can agents earn any money now in this market segment?

A lot of attention has been paid to back-end payments since the majority of U.S. airlines went to zero pay more than a month ago. But in reality, few agents will ever benefit from these schemes. Airlines only offer sweeteners to agencies that can generate enough volume to affect marketshare, and only 20 percent of the travel agent industry is able to do that. But there is one aspect of...