Originally Posted by
SgtRyan
I always was with the understanding that airlines don't pay commission to OTA's or agents. If that is the case, then why do they sell flights? Maybe someone with some knowledge can shed light?
You're taking commission to be a % of the ticket cost which is correct. Forget that terminlogy, it's old school. Why OTA's & Agents sell flights:
- They get nett fares (think £20 a ticket) cheaper than airlines sell direct, from the airline - why wouldn't they - they sell millions and millions of tickets on airlines
- They get kickbacks, which can be substantial (i.e. if they hit x00'ks worth of sales they will get an extra £20 per ticket, or a set figure, or marketing money)
- For Tour Op's (an industry I work closely with) they can book multi-centres with some airlines (i.e. BA) a hell of a lot easier than you, or him, or that bloke over there on Flyertalk who thinks they are all knowing as they have a $100 subscription to Expert Flyer
- They get the ancillary sales
For benefit of doubt, a huge OTA I used to work with customer service was horrendous (wasn't expedia), but the more niche Tour Op businesses I now work alongside would not let the above happen if they'd booked the ticket. Well, it would happen, but then they'd take over responsibility and get it sorted. Personally I can't stand the big OTA's, but needs must, and they are successful, but work with tiny margins (which is why you are dealing with someone on £4k a year normally working in Delhi/Bangalore/Manila).