Re: Airline Travel Agent Commissions

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And why Nick, do you feel that the airlines should have a free distribution
network?

Mark

Nick Laflamme wrote:

> At 11:42 AM 3/25/2002 -0800, Matthew Montano wrote:
> >Now let me see if I get this right...
>
> <snip>
> >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.
>
> With all due respect to list members who are travel agents, I'm not sure if
> it's the airlines or the travel agents who "just don't get it." (And I'm
> tired of hearing travels bemoan each cut in commissions.)
>
> Airlines like Vanguard, Sun Country, WestJet and maybe JetBlue ought to be
> paying commissions. Why? Because they need something to level the playing
> ground against the advantages the majors have: name recognition, schedule
> advantages, and convenience.
>
> But why should Delta pay a travel agent a commission for a ticket? How
> often does a customer choose Delta over a competitor just because a travel
> agent recommended them because of a commission? People choose American,
> United, Delta, Northwest, and Continental because they're convenient and
> well known. In lots of cities both large and small, it's not hard to figure
> out a relatively fast, comparatively cheap way to get to some other city.
> It's a no-brainer for me to look at both United and Northwest when I'm
> considering travel between Washington and Minneapolis. Why would either
> United or Northwest pay a travel agent? Heck, United wants me to call them
> directly so there's no chance for someone to say, "Or you could fly Sun
> Country." The airlines want me to come directly to them; they've got call
> centers and web sites with retail access because customers look for them.
>
> The first person to walk into a board room and say, "Let's pay someone else
> to sell what we're already equipped to sell ourselves," has some explaining
> to do.
>
> I'm not saying I never use travel agents. But when I do, air transportation
> is never the driving factor; I'm looking at things like resort trips where
> once I've picked a resort and a time, the air travel will fall into place.
> And even then, if the travel agent says, "I'll just put you on Airtran for
> the travel," the majors know I'll ask, "Can I get there on..." and name two
> or three majors. No amount of commission paid to the travel agent is going
> to get me to pick Airtran. United, Delta, and the others don't have to pay
> that commission. Airtran and the other non-majors ought to try.
>
> None of this applies to Southwest, of course. They're in a class by
> themselves. :-)
>
> >Matthew
>
> Nick

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