Re: Airline Travel Agent Commissions

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You certainly don't give us much credit do you Addison.  I ALWAYS have my
clients interest as my first priority and would never book someone on an airline
because I make more money.  You seem to have forgotten about these little things
called frequent flyer programs.  They dictate what carrier we use in most cases
because you want your points.  I resent your implication that I am driven by $$$
and don't care about my clients.

Mark

Addison Schonland wrote:

> I think that the whole idea of giving agents commissions in the first place
> was a mistake.  How can an agent watch for the passenger's interests while
> being paid by the airline?  That is a conflict.  Airlines should be forced
> to sell their product at whatever net fares they can and if you use an agent
> let them charge for the service.  Works like that in every other industry.
>
> I know I will NOT fly Pakistan Air for free, but happily pay full fare on
> the same route flying Cathay.  Agent or not.
>
> Next when I see how poorly the online systems deal with overseas flights,
> everyone needs an agent.  Then paying for the service is OK.
>
> When flying in the US, especially Southwest, who needs an agent?
>
> We live in a (US) world where we have full service brokers like Merril Lynch
> and discount brokers like Schwab.  Both make money becuase the markets likes
> both.
>
> Travel agents should embrace the new world becuase they are free of the
> airline tyranny once and for all.  Service is a very "sticky" product -
> people stick with their providers because the service providers know and
> understand them.  If you disagree tell me how your online ticket agent
> (Expedia, Travelocity et al) took care of you on Sept. 12th.  I know I stood
> in line in downtown DC for 3 hours like the rest of the folks on UA...it
> wasn't pretty.  Had I used an agent I likely could have done it all by
> phone.
>
> -----Original Message-----
> From: The Airline List [mailto:AIRLINE@LISTSERV.CUNY.EDU]On Behalf Of
> Mark Greenwood
> Sent: Monday, March 25, 2002 6:42 PM
> To: AIRLINE@LISTSERV.CUNY.EDU
> Subject: Re: Airline Travel Agent Commissions
>
> 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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