On Tue, 26 Mar 2002 09:19:55 -0500, you wrote: >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. > You are really not getting it, thinking as a customer but not knowing the bigger picture The travel agents sell some 75 percent of most of the majors' seats, and you can reckon on at least 15 percent sold by other means, eg airlines' own web sites, other airlines. That leaves at most 10 percent sold directly by the airlines. Even if internet sales were to double, there is no way that any airline can ramp up by five or six hundred percent to handle direct calls. And bear in mind that it isn't just a matter of making bookings: there's a whole bunch of other stuff that happens behind the scenes, eg refunds and payments which the airline will have to handle. I'd hate to think how much effort it will need to handle lots more payments directly instead of the current BSP system which swipes money owed to airlines from agents' bank accounts every month. -- Visit Caribbean Aviation: http://www.caribbeanaviation.com/ -----BEGIN GEEK CODE BLOCK----- Version: 3.12 GIT d? US W++ N++ o+++ w=20 b+ y+=20 ------END GEEK CODE BLOCK------