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Title: What prompted the airlines to alter the travel agent commission structure? Post by: rvalen98 on Jan 28, 2018 What prompted the airlines to alter the travel agent commission structure?
What will be an ideal response? Title: What prompted the airlines to alter the travel agent commission structure? Post by: illyannam1 on Jan 28, 2018 During the mid-1990s, distribution expenses (not jet fuel costs) were second to labor salaries and benefits as the leading operating expense for airlines. Distribution expenses include the costs of selling the product through third parties like travel agencies. In February 1995, Delta initiated a 50 cap per domestic ticket. Almost all of the domestic air carriers subsequently matched the move. Over the next seven years, the airlines continued to cut commissions on domestic tickets until they were totally eliminated in March 2002. Commissions continued to be paid on international airlines tickets and other suppliers also have maintained a commission structure, albeit at a reduced level making life difficult for small and medium travel agencies.
Title: What prompted the airlines to alter the travel agent commission structure? Post by: rvalen98 on Jan 28, 2018 This is exactly what I've been wanting
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