Manufacturing Industry

British Airways releases travel agent commission details - Brief Article

Airline Industry Information, Jan 25, 2000

British Airways unveiled its new travel agents pay scheme on 24 January in a move that will end the payment of a 7% commission fee by the carrier.

According to the new scheme, which is effective from the beginning of 2001, travel agents will be paid for making a booking, issuing documents and collecting the fare, with higher fees to be paid for long-haul bookings and for agents who market and sell business fares according to the British Airways` focus on the business sector.

A spokesperson for British Airways said that the new system was `transparent and efficient` and was designed so that the new `savvy` generation of purchasers could see exactly what they were paying for.

So far the exact fee levels have not been worked out and consultations with travel partners and trade partners are still ongoing.

However, the Association of British Travel Agencies (ABTA), which is in discussions with the carrier, has already said that it was unsure of the new proposal and said that `commission cutting is very threatening for agents...we don`t accept the principle of booking fees or transaction fees.`

The ABTA has indicated that British Airways' new fee structure may see travel agents favour rival airlines, and Virgin Atlantic Airways has already said that it would not be reducing its 9% commission fee.

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