Article: Airlines Slash Travel Agent Commissions

[AFF Editor]

Airlines Slash Travel Agent Commissions is an article written by AFF editorial staff:

Airlines Slash Travel Agent Commissions

Many international airlines are about to slash the commissions they pay to Australian travel agents by as much as 80%, upending the traditional business

www.australianfrequentflyer.com.au

You can leave a comment or discuss this topic below.

 

[SeatBackForward]

I assume this doesn't reduce the price if you purchase tickets on these airlines directly..

 

[Robert K]

can people that book from travel agents now contact the airlines directly to solve issues then?

 

[AIRwin]

can people that book from travel agents now contact the airlines directly to solve issues then?

I think it's still status quo...

 

[gregk]

This is the same as the financial advice business. They had to evolve to a fee for service model when commissions were banned. I disagree with Matt - if agents stop recommending airlines because of commission they will lose credibility and business. Better to evolve to being open about where commissions are earned and not and charge a fee for service.

 

[SCM]

Qantas wants travel agents to be free customer support for them, while paying them almost nothing.

 

[drron]

But there are a few TAs that now will recommend other airlines over QF. The problem for QF is that what they are telling their clients is the truth. A lot of better airlines than QF out there.

 

[LizC]

I assume this doesn't reduce the price if you purchase tickets on these airlines directly..

No, they've slashed our commission and in many cases (Qantas) hiked up the fares that the consumer will pay.

 

[justinbrett]

Qantas wants travel agents to be free customer support for them, while paying them almost nothing.

Qantas, like any other travel provider, wants people to book direct.

 

[LizC]

Qantas, like any other travel provider, wants people to book direct.

Yes, but sadly I don't think they've allocated the staff to deal with the incoming calls. Their wait times now are horrendous and they will only get worse as agents elcet not to sell them and clients have to deal direct.

 

[RooFlyer]

I assume this doesn't reduce the price if you purchase tickets on these airlines directly..

Correct.

can people that book from travel agents now contact the airlines directly to solve issues then?

No, you will still need to go via the TA, at least for the first sector. For me, thats the tremedous advantage of using a TA - they fix issues along the way. Like drron, I've had a magnificent TA for 15 or so years now. A number of times I've offered to pay a fee for an itinery preparation because it was complex and i changed it a couple of times. Always declined. Maybe not in the future, but i'd still happily pay it.

And they know not to offer me Qantas internationally these days unless its unavoidable.

Welcome to AFF @LizC . As a TA you have a number of friends here (and equally, those who are keen on DIY )

 

[JessicaTam]

My TA has introduced a fee for bookings. I am happy to pay it as she helps me with those slightly more complex bookings. Funnily enough my last booking with her only had 2 QF (domestic) flights.

 

[AVV]

Airlines Slash Travel Agent Commissions is an article written by AFF editorial staff:

Airlines Slash Travel Agent Commissions

Many international airlines are about to slash the commissions they pay to Australian travel agents by as much as 80%, upending the traditional business

www.australianfrequentflyer.com.au

You can leave a comment or discuss this topic below.

I am glad no longer a T/Agent. Spent hours with clients. I was an excellant agent who lived on our IATA Commision. I gave service for free , rice paper itinerires . I knew all areas and even gate numbers of carriers. So many agents have no Idea. Was Told by a fellow agent in Chicago that they only received $50.00 max that was 20 yrs ago. I was resposible if any thing was wrong. Never happened. Just existed on commision as IATA agent. The ethnic carriers got net fares with non accredited airlines I could not compete with, untill they needed a proffesional who knew . Have many stories. Really blame them

 

[drron]

I am glad no longer a T/Agent. Spent hours with clients. I was an excellant agent who lived on our IATA Commision. I gave service for free , rice paper itinerires . I knew all areas and even gate numbers of carriers. So many agents have no Idea. Was Told by a fellow agent in Chicago that they only received $50.00 max that was 20 yrs ago. I was resposible if any thing was wrong. Never happened. Just existed on commision as IATA agent. The ethnic carriers got net fares with non accredited airlines I could not compete with, untill they needed a proffesional who knew . Have many stories. Really blame them

Our neice was a well regarded TA managing a couple of large firms and ended up in charge of ME bank travel. Covid struck and the bank just closed the travel section completely. Such a loss. Now sells fashion.