Business Services Industry
Southwest Airlines Will Cut Travel Agent Commissions, Five Years after Rivals.(Knight Ridder/Tribune Business News)
Knight Ridder/Tribune Business News, December, 2000 by Reed, Dan
Dec. 13--Southwest Airlines waited nearly five years longer than its more traditional rivals, and it didn't go as far as they have gone, but the Dallas-based industry maverick said Tuesday that it too will cut its travel agency sales commission rate from the traditional 10 percent.
Beginning Jan. 1, Southwest will pay travel agents an 8 percent commission on the sale of electronic tickets for flights on Southwest, limited to a maximum commission of $30 on a one-way ticket or $60 on a round-trip ticket.
Additionally, the airline said it will pay travel agents only 5 percent commission on the sale of conventional paper tickets for flights on Southwest, also limited to $30 for one-way and $60 for a round-trip bookings.
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