Re: Airline Travel Agent Commissions

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The issue discussed is not about ethics of demanding or offering
rebates....it's about the Airlines (majors) unilaterally eliminating
commissions to travel agents in the US and Canada across the board. That's
on the surface. But, beneath it 'select' agencies will be spared the axe.

So if you were a commission-rebating agency before....what are you gonna
rebate now? Most likely the furniture and useless PCs sitting around
collecting dust...er..scratch rebate..make that liquidation.

"Michael C. Berch" wrote:

> OK, will someone explain to me what is "unethical" about customers
> demanding, or travel agents offering, a commission rebate?  It's just
> the free market at work.  If a corporate account is willing to give all
> its business to a particular agency, surely that's worth a discount on
> commission - after all, that's a bunch of revenue that the agency does
> not have to go out and chase down via advertising or other marketing
> efforts.   It's just like any bulk purchase - the more you commit to
> buying, the lower the price.   The commission is the agency's money, and
> they are free to do with it what they please, including rebating it in
> order to gain more customers or market share.   Have some people
> forgotten the principles of capitalism and free market economics?
>
> --
> Michael C. Berch
> mcb@postmodern.com

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