Re: Airline Travel Agent Commissions

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At 10:29 PM 3/25/2002 +0000, Roger Chung-Wee wrote:
>On Mon, 25 Mar 2002 15:11:01 -0500, you wrote:
>
>Let's paint a little scenario. Say that you work for a retailer - it
>could be in insurance, finance, travel - doesn't matter. It's at the
>month-end.
>
>
>"But could they possibly field all those direct customers?" "Don't be
>daft. Even with increased internet sales, the number of reservations
>agents - and all the associated expenses like wages, insurance,
>accommodation, rent, electricity, etc - would have to increase hugely,
>thus more than wiping out any benefits from not paying commissions."

Interesting supposition. I'd say the airlines already have excess capacity
in call centers; we all have heard of airline call centers that have been
shuttered. You're saying that it'll be prohibitively expensive for the
airlines to ramp back up to take the call volumes they'd have to take?

Wow those airlines sure are stupid.

If it's true.

>"Hang on, I've just thought of something else.  Seeing that a lot of
>people will still need to book with us, for the practical reason that they
>can't all get onto an airline's agent,

Really? Why not? You've got more agents sitting around to take calls from
clients than the airlines do? Wow, how can you afford that? And why do you
do that?

The airlines are going to get their money. They're going to manage fares to
get as many butts in seats on planes as they can. We've seen this for
twenty years or more, since deregulation in the US. You're alleging that
they don't have as many agents as they need to handle all the customer
demand for their services, that seats would go unsold because the airlines
can't be bothered to have enough agents to sell tickets.

Whose those airlines sure are stupid.

If it's true.

Me? I get an airline agent on the phone in less time than it takes me to
drive to a travel agent, and they answer the phones 24x7. Maybe I'm weird,
but my experiences don't match your horror stories.

Almost sorry I stirred up this hornet's nest,
Nick

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