Travel Agents Protest Commission Cuts By Handing Out Vouchers - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
News

Travel Agents Protest Commission Cuts By Handing Out Vouchers

Travel agents protest airline commission cuts by offering vouchers to customers.

The dot-com fallout will hit airports nationwide Thursday as travel agents take on the airlines, following a major commission cut revealed last week.

From 1:00 p.m. to 3:00 p.m. EST, travel agents will be protesting the cuts by handing out to travelers at airports $30 vouchers, which can be used to book tours and cruises but not airline flights. The $30 represents the difference in commission that travel agents will receive under the airlines' new policy, which sets the maximum payment at just $20 for round-trip airline tickets, down from $50. The point, says Terryl Lofgren, president of World Wide Adventures & Photo Journeys of Denver, is to emphasize that agents provide a broad range of services beyond issuing tickets, including "knowledge, experience, and peace of mind."

That may well be true, but the airlines argue that with their bread-and-butter high-end business customers pulling back on travel spending--and their financials in the red--they have little choice but to cut costs wherever possible. Delta Air Lines estimates that it saves $15 to $25 per ticket when customers buy direct, for example, and it hopes to push 20% of its total revenue through Internet sales this year.

The airlines have taken a slow-but-steady approach to cutting commissions, trying not to alienate their existing distribution channel as they grow their Web business. A series of commission cuts has brought the figure down from a flat 10% three years ago and given agents time to come up with alternatives. Many agencies, and almost all agencies that sell business-to-business, now charge customers a fee for their services.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
The State of IT & Cybersecurity Operations 2020
The State of IT & Cybersecurity Operations 2020
Download this report from InformationWeek, in partnership with Dark Reading, to learn more about how today's IT operations teams work with cybersecurity operations, what technologies they are using, and how they communicate and share responsibility--or create risk by failing to do so. Get it now!
Slideshows
IT Careers: 10 Industries with Job Openings Right Now
Cynthia Harvey, Freelance Journalist, InformationWeek,  5/27/2020
Commentary
How 5G Rollout May Benefit Businesses More than Consumers
Joao-Pierre S. Ruth, Senior Writer,  5/21/2020
News
IT Leadership in Education: Getting Online School Right
Jessica Davis, Senior Editor, Enterprise Apps,  5/20/2020
Register for InformationWeek Newsletters
Video
Current Issue
Key to Cloud Success: The Right Management
This IT Trend highlights some of the steps IT teams can take to keep their cloud environments running in a safe, efficient manner.
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll