Are you charging your client $800 or $320?

I do a lot of my research on line. I book with my travel agency especially when I know there's a reasonable commission. For award travel I either do it on line or over the telephone with the airline. I know the strengths of the agents at the agency and will ask for the appropriate one when I ask for booking (sometimes I just e-mail them). My agency provides me with help when something goes wrong (once by using their personal connections out of a city that was overbooked for the next two days). Further, TAs in Ontario (and probably many other places) provide a back up when an airline or a cruise line shuts down. Had I done my own booking I would have recourse only to my credit card company; this way both cover me. Finally I do value their advice when travelling to places unfamiliar to me.

I've had the same TA for 4 years now....she's a real expert....and sometimes she can pull strings that I can't.

I do my research first via online and on PTO...then I tell her what I found and what I need and she does the rest. I don't mind paying $50-100 more than what I could get myself sometimes.....TA's are invaluable.

I once had to cancel a non-refundable $2,800 ticket......and she got it re-issued for a $200 fee...after all my pleas fell on deaf ears at the airline (Lan Chile).....that's where the value is IMHO.

VicOsaki: I do not think you have thought the concept of zero commissions through. If the airlines did not pay commissions on tickets sold, it would not matter who sold the tickets. Why would the airline care if they were not the lowest source as long as they did not have to pay someone else for issuing their tickets? The airlines could always offer bonus miles for their online ticket sales for the mileage crack addicts

The bottom line is the current system is broken and if it continues down the current path, 20%-50% of all existing travel agents will be out of business soon. This is not what the airlines want or need. The airlines have been closing CTO's, and laying off reservations staff. Do you really think the internet can fill the void that travel agents currently provide?

The concept of zero commissions with the airlines charging a $30/$50 ticketing fee is brilliant. One can only hope that more of these types of ideas are forthcoming.

Tango I missed Gordon's speech... so could you expound a little more here?

At this point, the $30-$50 still sounds like a way for higher fares to me... yet in some cases, still decreased agency commissions.

For example, an LAX-BKK BC fare used to pay
8-11% commision typically ($3-400). How is no commission plus $30-50 bucks going to improve the situation?

Your thoughts appreciated.

Airlines have been reducing commissions over the last 3 years. Currently, all published airfares earn 5% commission with caps. The most an agency can earn on international tickets is $100 and for domestic tickets $20.

The current model is broken and everyone knows it. The harder agents work in getting a lower airfare for you, the less they get paid. Does that make any sense. By leveling the playing field (taking commissions down to zero and having the airlines charge ticketing fee's), would be the first step in building a new airline/agency relationship that is healthy and profitable for the airlines and agency community. The events of 9-11 showed that the airlines need a vialble agency community out there. The internet will never be able to fully replace what agents do. Try to do anything but buy a ticket on the internet and you will understand this.

If you think this is a bit far fetched, consider that in Singapore, airline commissions have gone to zero and many agents now charge fees in excess of $100 per ticket. In the United Kingdom, most agents now collect a ticketing fullfilment fee and this is not based upon the value of the ticket sold.

I have no idea what the airlines are thinking, but I do know what they're doing.

They have been using the most vicious weapon imaginable against agents. They're posting prices on their websites and on Orbitz that aren't available to agents. It's mind boggling that a principal and his agent are at war. Typically, each has his own turf and they try not to step on each others' toes. What more could the airlines do to tell agents to take a hike?

The airlines don't seem to have learned that they need agents as a result of 911. They certainly haven't mended their ways with agents. The airlines probably think that 911 was a freakish one time event.

While you throw all agents into one basket, the airlines are a bit more subtle. The airlines know they need mega agencies that service corporate America. And the airlines know that the megas can fend for themselves by charging well justified fees for services rendered. But by their actions, the airlines don't seem to value little agencies. They seem to be saying there are too many "agents" working off their kitchen tables, and causing them no end of heartburn.

Tango says, "The current model is broken and everyone knows it. The harder agents work in getting a lower airfare for you, the less they get paid." Actually, this is one of the airlines' major complaints against agents. That's why the airlines recall back to backs and hidden cities.

It's not logical that the airlines would turn 180 degrees and put themselves in a pricing straight jacket for a group of people they don't like.



[This message has been edited by VicOsaki (edited 11-19-2001).]

What people reading this thread should take away is that the airlines have basically stopped paying commissions on tickets.

Agents think they have a solution which is to sell consolidator tickets. It's great because unlike a published airfare, the consolidator can print any price on the ticket he wants. It's not impossible for the agent to be making 300% profit while the consumer blishfully believes that he paid a normal commission.

There is nothing inherently wrong with buying a consolidator ticket. But you'd better make sure that the underlying consolidator is reliable, and what the agent is earning.

It's even more complicated because some consolidators compensate agents with commissions like the airline did in the distant past, and many consolidators deal directly with the public.

Aye, its more than trustworthy consolidators, but trustworthy hotels, car rentals, limo services, and tour operators!

Orbitz has been a blessing for me, not a curse. Orbitz shows many fares, of which most aren't available all the time. How many of you have tried to book something on Orbitz and got the message "unable to confirm Itinerary"? ? I can tell you of at least 10 or 15 instances.

As an agent, If I need a "U" seat on Delta and can't get it, but "L" or another class of service next to it is open, I can normally call and get it opened up. See if Orbitz can do that.

Get stuck in the middle of timbuctu and calling Orbitz... I wish you luck... Then try my cell phone... it's on 24/7 when I'm in range...

Anyway, I just wish that more agents treated clients the way I did, then there wouldn't be a need to entice you with 2,000 bonus miles or "guaranteeing" the lowest fare (even after you ticket it I still check for lower fares)...

-nate

Orbitz is the airlines secret weapon to go after the mega online agencies travelocity and expedia. If these two giants falter, I doubt Orbitz will stay around for long.

Mom and Pop travel agencies are a vital link in the distribution chain. Think of the all the people who do not live near an airport. Where are they going to go to purchase their tickets?

Orbitz was formed for a number of reasons. A major reason that won't go away are the CRS fees that the airlines pay everytime there is a booking.

Orbitz uses a new program that bypasses the CRS's and thus their fees. The grand strategy is to get rid of these fees on retail and agent transactions. Retail Orbitz is the first step.

We do use a corporate travel agent, but we have finally wised up and are allowing employees to use on-line booking as long as they can save $150 over the travel agent fare. It works.

Actually Orbitz uses Worldspan.

What you are seeing them do is an enhancement of a product that Worldspan offers... PowerShopper.

-nate

UAPremierEx you're wrong. Orbitz licenses its software from ITA Software, Inc. that was founded in 1996 by computer scientists from the Artificial Intelligence Laboratory at the Massachusetts Institute of Technology.

It's really the first new interface with airline reservations systems in a long while. That's why it works so well.

I only use a TA (corporate TA) when I have to... ie. for a while after my controller gets on my nerves for booking things myself. Only on very rare occasions will I use a TA por personal travel.

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Gaucho100K