CXH From Canada, joined Oct 2004, 142 posts, RR: 0 Reply 3, posted (6 years 11 months 1 week 18 hours ago) and read 7440 times:
The above is indeed correct to my knowledge. Agency Service fees are very common if you want to get any degree of personal service.
But for tour packages to 'sun' destinations, here in Canada most tour operators pay 10% to 15%. Not sure about UK percentages, but considering how many Brits go to the south of Spain, etc. via MyTravel, FirstChoice, etc., it's a big part of travel ageny business there. Also as mentioned , "net fares" are big nowadays, even from tour operators. That's where the tour operator/wholesaler/airline prices it without commission and the agency marks it up for as much or little as they wish. Apparently many travel agencies rely on selling travel insurance as the commission there can be as high as 40%. Some website and toll free number agencies make their profit on insurance and add-ons and sell the actual air and hotel for close to cost.
That's why many travel agencies have focused on either business travellers (first class seats often still have commission built in) or leisure package tours. Trying to be all thing to everybody won't work anymore.
In Canada, AC, like most network / legacy carriers pay close to 0% with "overrides" for some rare cases. WestJet still pays 5% to 9% for flights.
I've seen the future, I can't afford it. - Martin Fry
DTWAGENT From United States of America, joined Jan 2006, 1283 posts, RR: 0 Reply 5, posted (6 years 11 months 1 week 16 hours ago) and read 7357 times:
As a travel agent myself I can tell ya that only 1 air carrier pays commissions to us. The rest in the US do not pay commissions. Only 1 air carrier in CA also pays. Most EU airlines have stoped paying also. They only way we get any commission is if we sell a complete vacation package. And only then it could be 5% to 14% depending on the airline or tour company. Here in the US 99% of all travel agencies have gone to charging a service fee. And now that AA (and other US airlines) charges us travel agencies a $3.50 per segment fee when we use their GDS system. There are some holes in this plan but not much for moving around. We travel agents do not get any discounts on any airlines. We have to pay the same amount as everyone else does. However, people are starting to go back to travel agents because the web sites can not put together a package that fits what the family wants to do. And in most cases 97% of the time, I can fine a cheeper airfare and add my service fee and still beat the lowest fare on these Web sites. I did it the other day for a client. DTW to PHX. Everything on the Web site was pricing at $250 or higher. I found a fare and my service fee for a total of $199.00. And that was with AM flights out and Afternoon flight back. No Redeye flights.
AirScoot From United States of America, joined May 2005, 688 posts, RR: 2 Reply 6, posted (6 years 11 months 1 week 16 hours ago) and read 7322 times:
I, for one, can say that because of the lack of revenue stream in the TA business these days, I'm very glad to be out of the retail end of this business.
For everyone in the business, remember when it was 10-15% on every ticket, you could get specials above and beyond the AD75, and there was the occasional upgrade available from your sales rep?
Quoting DTWAGENT (Reply 5): And now that AA (and other US airlines) charges us travel agencies a $3.50 per segment fee when we use their GDS system.
They charge for anyone using a system they don't have an agreement with. They're on SABRE and they did manage to cut a last minute deal with SABRE at the last minute to offer access that didn't include the fee.