Southwest Rapid Rewards - Southwest Airlines Announces New Travel Agency Commission Policy

Southwest Airlines (NYSE: LUV - news) today announced that effective Jan. 1, 2001, it will pay an eight percent commission on all Southwest Ticketless transactions issued by traditional travel agencies and five percent commission on all paper ticket transactions issued...


...The new policy will pay traditional travel agents (Southwest does not pay commissions for Internet bookings) an eight percent commission. Further, the airline announced that it will pay five percent commission to travel agents who do not utilize the carrier's Ticketless Travel System (except for travel booked through the Southwest Vacations, Meetings, or Groups programs, where the eight percent commission will apply). A cap of $30 on a one-way fare and of $60 on a roundtrip fare will apply to both commission levels. More than 80 percent of Southwest travelers now travel without a ticket, and the Ticketless system allows the carrier to help control costs and continue to offer low fares.
http://biz.yahoo.com/prnews/001212/tx_southwe_2.html

Re "More than 80 percent of Southwest travelers now travel without a ticket"

Just to cut down on the spin here, note that Southwest does not interline with other carriers (that would cost money). That's why fewer passengers on other airlines use e-tickets, because they would need to convert them to paper during flight irregularities. Interlining e-tickets would be ideal, but for now, at least the option is there.