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Posted Jun 9, 2009

WestJet Caves Partially

The Association of Canadian Travel Agencies convinced WestJet not to cut travel agency commissions as deeply as it had planned. After discussions with ACTA, WestJet agreed to lower commissions only by two percentage points--to 7 percent from 9 percent--rather than by the five percentage points it initially announced, according to ACTA. The change still will be effective July 1.

WestJet's earlier decision to lower commissions to 4 percent disappointed ACTA. It was followed quickly by an Air Canada decision to add 4 percent agency commissions to certain fares booked through a direct online agent portal, drawing praise from ACTA. I guess the proverbial ball is in Air Canada's court now. Volley or pass?

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Re: WestJet Caves Partially

Posted Jun 9, 2009 by

David

Air Canada volleyed. Today it raised to 7 percent commissions on Tango fares booked through its direct agency portal or via direct connections to the AC2U application programming interface. The change, from 4 percent, is effective immediately. The airline cited positive "industry reaction" and said it would "continue to make adjustments as necessary to ensure we maintain our competitive position with our valued travel partners." Translation: if WestJet again adjusts its travel agency commissions, so will Air Canada.