Many consumers are unaware of the fact that consolidator tickets are marked up. They may not shop around because they believe that the agent is earning a standard commission. When you buy a regular ticket, the price is stated on its face, everyone knows that a small commission is included. When someone buys a consolidator ticket, the face value is anything the consoldiator and the agent wants. Hidden, and I mean hidden, in the price is profit limited only by what the agent thinks he can get. If the customer is aware of a 300% markup fine, but if he isn't dissuaded from his reasonably held idea that the agent is making a commission and not a large profit, then I think that is wrong.

The "key stone" standard that you mentioned is for retailers. The merchant who stocks inventory, finances it, risks the chance that it doesn't sell, that it spoils, and that it becomes obsolete takes big chances and deserves big profits. An agent is simply that. He take no such chances. He doesn't buy until he knows he has a buyer.

"If the proposal to lower commissions to zero and have the airlines charge a $30-$50 booking fee for all tickets you buy directly through the airlines go through"

This will never happened. The airlines won't tolerate being undersold, and the internet sellers have shown that the can do well enough with markups of less than $30-$50. No way the airlines will tie themselves to a price that their competitors can beat.


[This message has been edited by VicOsaki (edited 11-18-2001).]