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Posted Feb 19, 2010
Orbitz has launched a new platform for traditional travel agents which enables them to book stand-alone hotel rooms as well as vacation packages. This matches (for hotel only anyway) agentaccess, a program which hotels.com has offered to the agency community for some time.
Posted Jun 9, 2009
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?
Posted May 20, 2009
Maybe I am naive in thinking anyone trusted anyone in the corporate travel market in the first place, but I don't think so. Once all the hard bargaining has been done and the parameters and delivery goals have been set, then at least an element of trust must prevail. Sadly, I am beginning to fear that trust is now going out the window along with continuity and loyalty.
Posted Apr 21, 2009
Though they weren't the sort of comments that would raise hackles around the industry--the way American Airlines' Gerard Arpey's and Delta Air Lines' Richard Anderson's did--United Airlines COO John Tague discussed distribution costs today with analysts. "Ultimately, we've got to have capacity low enough to be able to have some commercial courage in attacking distribution costs," he said. "If we are constantly terrorized by excess capacity, the chances of improving the economics around these key cost components in the business are not very high."
Posted Oct 13, 2008
One of the primary reasons for the demise of commissions was the desire by airlines to reduce their distribution costs. They also felt it would take out an intermediary, bring them closer to their end customers and give themselves a competitive edge. Their strategy was not resisted by corporations who saw it as a way to commoditise this vexing and rather antique type of purchasing, or at least make it far more transparent. After all, experience showed them that stripping a product down to its component parts makes it far easier to negotiate lower prices. There were mixed feelings amongst travel management companies. It varied around the world from despair and anger to others who saw it as an opportunity to survive and thrive whilst their peers faltered under the pressure of having to justify their role in the supply chain.
The end result has proved to be fascinating and I am not sure if any of the key stakeholders got what they wanted out of it.
Posted Jun 18, 2008
First reported by The Beat, United Airlines today publicly discussed plans to slash travel agency commissions, also known as overrides or incentives.
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