Manufacturing Industry
Three US airlines end travel agent commissions
Airline Industry Information, March 19, 2002
AIRLINE INDUSTRY INFORMATION-(C)1997-2002 M2 COMMUNICATIONS LTD
American Airlines and Continental Airlines have announced an end to base commissions paid to travel agents for tickets sold in the United States and Canada.
The move, effective immediately, follows a similar decision by Delta Air Lines last week. In its announcement, Delta Air Lines said that it would replace commissions with a "pay-for-performance" programme to reward travel agencies that meet sales targets.
The vast majority of airline tickets are still sold through travel agents but the airlines are trying to cut the cost of ticket distribution and hope to encourage customers to book their tickets over the Internet instead.
According to Reuters, travel industry experts believe that consumers will end up paying more for tickets as the airlines simply shift their costs and travel agents add more fees.
((Comments on this story may be sent to aii.feedback@m2.com))
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