COMMISSION CUTS SQUEEZE TRAVEL AGENTS; PRICES TO GO UP, SOME SAY.Byline: Enrique Rivero Daily News Staff Writer Angry travel agents say a recent decision by more than a dozen airlines to cut their commissions will hurt both their businesses and travelers, who could face higher costs and miss out on lower fares that only agents can spot. While yet another airline announced Wednesday it is also cutting commissions from 10 percent to 8 percent per ticket, consumer advocates are weighing in on the side of travel agents, saying the airlines' decision could lead to higher ticket prices and discourage consumers from shopping around. Tom Merkens, owner of Village Travel in Westlake Village, said it costs him generally $30 to process a ticket. With air fares averaging $350, commissions would be $25.69 under the new structure vs. $32.11 under the old one. Thus, under the new commission, he will lose more than $4 for each ticket. ``Obviously I can't operate at a loss and stay in business. I'm going to have to charge my clients something to make up the different to make up what the airlines have cut,'' Merkens said Wednesday. Jon Golinger of the California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). Public Interest Research Group said the change doesn't necessarily mean agents will charge more. But the danger does exist, and the move appears to be an attempt by the airlines to bypass agents and sell directly to the public. ``This could potentially mean that the best air fare deal is going to fly out the window, because the more people (there are) who are working to get you the best deal, the less you're likely to pay,'' Golinger said. The reductions were kicked off Sept. 19 by United Airlines, which cut commissions to 8 percent in what United says is an effort to control costs. Following in short order were Continental, USAir, Delta, American, Northwest, Alaska, Horizon, America West, Midway Midway, island group (2 sq mi/5.2 sq km), central Pacific, c.1,150 mi (1,850 km) NW of Honolulu, comprising Sand and Eastern islands with the surrounding atoll. Discovered by Americans in 1859, Midway was annexed in 1867. A cable station was opened in 1903. Express, KLM KLM Kaiserliche Marine (Enigma: Rising Tide game) KLM Koninklijke Luchtvaart Maatschappij (Royal Dutch Airlines) KLM Klub Langer Menschen (German: Tall Person Club) , Lufthansa and Air France Air France in full Compagnie Internationale Air France French passenger and cargo airline with more than 200 destinations in some 80 countries. It introduced supersonic Concorde service in 1976, but financial loss led the company to cease its Concorde , according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the Association of Retail Travel Agents. TransWorld Airlines announced Wednesday that it, too, would cut commissions. Some airlines are applying the commission cuts only to domestic flights, while others included foreign flights as well. In addition, only some are applying the payment caps that many airlines began instituting in early 1995. Alaska Airlines Alaska Airlines, (NYSE: ALK) is an airline based in Seattle, Washington, United States. It operates hubs at Seattle-Tacoma International Airport, Ted Stevens Anchorage International Airport, Los Angeles International Airport, and Portland International Airport. reduced commissions beginning Wednesday, spokesman Jack Evans For others with the same name, see . Jack Miller (born April 2, 1982 in Parkland, Washington), better known by his ring name Jack Evans, is a professional wrestler who currently competes in the American-based promotion Ring of Honor and the Japanese-based promotion said, but only in an attempt to match competitors' prices. ``Basically we're forced into doing this,'' Evans Ev·ans , Herbert McLean 1882-1971. American anatomist who isolated four pituitary hormones and discovered vitamin E (1922). said. ``We went into this kicking and screaming. It's not something we wanted to do.'' One airline that won't change its commission is Southwest Airlines This article is about the American airline. For the former Japanese airline, see Japan Transocean Air. For the British airline, see Air Southwest. Southwest Airlines Co. , which in March 1995 vowed to continue paying the 10 percent commission through 2000 in response to concerns from travel agents, area marketing manager Anastasia Albanese-O'Neill said. ``In this case they are our partners, we made the commitments in 1995,'' she said. ``We will not deviate from these commitments.'' CAPTION(S): Photo PHOTO Travel agency owner Tom Merkens says airlines' reduction in travel agent commissions will hurt consumers seeking deals. Bob Halvorsen/Daily News |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion