Airline Travel Agent Commissions

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Now let me see if I get this right...

Commission = Pay a 'cut' of the money you make to someone who
facilitated/worked to make you that money. In most industries it is
categorized as an incentive. And for nearly every sales position in the
western world, it represents a significant (if not all) portion of the
compensation a particular person might receive.

Commissions were structured so that the sales rep were incented to
charge as much as possible, within moral limits of decency and honesty.

... So a few years ago the Airline industry goes out and CAPS
commissions as an attempt to contain costs?

Oddly they still called it commissions. Then the biggies eliminated
commissions for nearly all tickets.

The total 'cost' of the supply chain hasn't really changed. The customer
is going to pay for it in the end. Except that Travel Agents will
continue to have to cover their costs. Either through increased fees or
decreased service. That's JUST what the airlines could use eh? Decreased
service. Increased Fees?  Car dealers call them "Delivery Charges",
Brokers call them trading commissions, Ticketmaster calls it
"Convenience Fee".

The funny thing is those extra 'fees' is that they never end up in the
originators pocket. If airlines figured out how to raise their prices
AND keep the sales reps for 75% of their product happy they would of
done much better. The customer would still have ended up paying the same
price anyways.

The first person in an executive board room that announces "Let's
achieve growth by dismissing 75% of our sales force" would be asked to
leave, point blank.

I guess the airline industry continues to show they just don't get it.

Matthew

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