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sb1 May 19, 08 3:10 am

*RTW retail price lower than GDS - Why/How?
How is it possible that some travel agents have lower prices on Star RTW fares than is available from GDS? What margin do these travel agents make on these fares and how?

For example (all numbers in AUD, from SYD):

from GDS: 2729, 2702
retail advertised prices: 2729, 2689, 2699

from GDS: 3779, 3740
retail advertised prices: 3779, 3699, 3709

Al B May 19, 08 4:20 am

It depends on the agent and what sort of overides they may get from certain carriers. If they ticket on that carriers plate, then they get a bigger "cut" or commission from that carrier. Some of them will pass that on to you in the form of a lower fare. (Totally messy process though, these RTW's with prorating and the suchlike! :) ).

An alternate scenario is some agents with a price beat guarantee or similar, will take a smaller slice of the regular commission they get in order to be able to offer a lower price. EG - the published fare is 2729.00, the agent gets let's say 7% commission so that's about 191.00. They may drop the "published" price and offer you a fare at 2689.00 or 40.00 off, so they only pocket 151.00. Regular commission levels, like overides, vary from carrier to carrier. While one Star partner may offer 7% another one may only offer 5% to further explain why some discounts aren't as much as others.

Al B May 19, 08 4:22 am


sb1 May 21, 08 11:21 am

Thanks for explanation, and welcome message.

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