UA wants agents to pay credit card fees
Jun 25, 2009, 5:55 pm
#1
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More cost savings
A travel agent friend of mine received an industry e-mail publication stating that United was going to stop accepting credit card payments from some agencies so they could save some money. Are things THAT bad at United? They just started taking credit cards only for BOB and BEV (buy on board and adult beverages). Is there cause for concern?
http://www.btnonline.com/businesstra..._id=1003987948
http://www.btnonline.com/businesstra..._id=1003987948
Jun 25, 2009, 6:03 pm
#2
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It makes perfect sense to me. If the ticket is not bought from United, why should United have to have to pay the CC fees?
Jun 25, 2009, 6:20 pm
#3
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Jun 25, 2009, 6:27 pm
#4
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Jun 25, 2009, 6:31 pm
#5
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The question isn't whether to or not to do anything. I simply wonder how bad things are at United. Should we be worried? This announcement comes the same week as they are furloughing more flight attendants.
Last edited by JoeTravel; Jun 25, 2009 at 6:33 pm Reason: misspelled word
Jun 25, 2009, 6:33 pm
#6
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Because if someone is always using a certain TA and has a credit card doesn't have the need to be absolutely loyal to UA, they will react in an obvious way.
Jun 25, 2009, 9:03 pm
#7
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UA has been looking at ways to reduce its CC processing fees for years. That's part of the reason for the push for the Chase UA card, not only is the bank buying miles but its also charging UA less for processing. I wonder what TAs are being forced to make this change? I suspect its a lot of the small to medium sized account with a lower portion of premium traffic. In fact there are a lot of travel agencies that do not sell any profitable business with UA, take the extra ~1% credit card fee into account and these agencies are even bigger money losers. I suspect the accounts targeted are those that are not UA contracted TAs so the impact to UA customers will be limited.
This is nothing but good news. UA is making the tough decisions to make itself into a carrier that can survive this down turn. I'm sure they are making some enemies in some TA ranks but imagine the savings on spend of a couple hundred million dollars.
This is nothing but good news. UA is making the tough decisions to make itself into a carrier that can survive this down turn. I'm sure they are making some enemies in some TA ranks but imagine the savings on spend of a couple hundred million dollars.
Jun 25, 2009, 9:48 pm
#9
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Jun 25, 2009, 10:40 pm
#10
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Also, I don't see any difference for UA between booking through an agent (but charged directly by UA) and using .bomb.
Jun 25, 2009, 10:51 pm
#11
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Jun 25, 2009, 10:56 pm
#12
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I still did not get the point. The amount I paid is the same as the one I should pay if I book on .bomb. UA charged my credit card directly. Any difference to UA? I am paying the agent fee instead of UA paying commission.
Jun 25, 2009, 11:02 pm
#13
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When you used your TA, instead of them charging you and paying the CC fees, they charged you on behalf of United, once again making United pay the CC fees, even though they are not the ones who issued the ticket.
Jun 25, 2009, 11:11 pm
#14
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It costs merchant's fees when you use a credit card. When you purchase FROM .bomb (aka United), United charges you and United pays the CC fees.
When you used your TA, instead of them charging you and paying the CC fees, they charged you on behalf of United, once again making United pay the CC fees, even though they are not the ones who issued the ticket.
When you used your TA, instead of them charging you and paying the CC fees, they charged you on behalf of United, once again making United pay the CC fees, even though they are not the ones who issued the ticket.
Seems to me like a good way for UA to lose a few more customers who get pushed by their TA to a different airline. Then again I'm not one of the experts who have so expertly guided UA into its current state of affairs so what do I know. In the current environment finding ways to reduce ease of purchase of your product by consumers is absolutely genius...what will they think of next?
Jun 25, 2009, 11:15 pm
#15
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It costs merchant's fees when you use a credit card. When you purchase FROM .bomb (aka United), United charges you and United pays the CC fees.
When you used your TA, instead of them charging you and paying the CC fees, they charged you on behalf of United, once again making United pay the CC fees, even though they are not the ones who issued the ticket.
When you used your TA, instead of them charging you and paying the CC fees, they charged you on behalf of United, once again making United pay the CC fees, even though they are not the ones who issued the ticket.