Travel Agencies Under Attack
I listen with interest to your shows. I wonder if
you are aware of the latest blow to the travel agency community.
On Thurs, Oct 7, United faxed the latest and most devastating
of a series of commission cuts, cutting commissions from eight percent to
five percent on international and domestic -- a 37 percent decrease in
revenue, with less than 12 hours to prepare for this
restructuring.
This change was matched by American the next day,
by Delta on October 11, Alitalia, Air France -- they all will follow.
The amazing thing about this is that there has been virtually no
notice of it in any news publication, and that this will very
likely cause the demise of most travel agencies, certainly of the
smaller ones. Of course, air travel is not all that we sell, but
it is a basic ingredient in most trips, certainly for business
travelers.
As you know it is difficult to find information as
rapidly online and many people haven't the expertise, equipment
or the time to do their own searches. The airlines are making it
clear that they do not need the travel agency for distribution,
and the public will be rankled to have to pay for services that
were once free.
Anyway I thought it would be important
for you to be aware of this further erosion of the relationship
between airline and travel agency. Thanks for listening.
Carolyn
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