SAA cuts out travel agents’ commissions
NATIONAL carrier South African Airways (SAA) will stop paying commission to travel agents from the beginning of next month, a move that will force retail agents to develop a new business model.
SAA says the use of internet and internal booking systems would save it about R1bn a year — the amount of commission it used to pay travel agents annually.
The abolition of commission payments forms part of a multipronged strategy by SAA’s new leadership to turn around the company in the next three to four years.
In February this year SAA CEO Khaya Ngqula said the commission paid to travel agents for each ticket would be removed, with agents instead charging a professional fee to the passenger for services rendered.
Ngqula said the business model of travel agents charging a professional fee was not new and had long been used in Europe, Australasia and the Americas.
“SAA needs to keep up with global trends. These changes will benefit our travel industry partners and customers,” he said.
More: businessday.co.za
Related Travel Information
Travel agents call off their ban against Air-India
Travel agents across the country have called off their 19-day agitation against Air-India and European carriers after getting an assurance from the A-I top brass that their grievances would be looked into.
"Travel agents across the country have decided to take back the decision of suspending ticket sales of Air-India and other European airliners after getting an assurance from the management that our problems pertaining to commission cuts would be considered," President of Travel Agents Association of India (TAAI), Balbir Mayal told a news agency here today.
The strike had little impact
Travel agents gear up to charge fees
AIR travellers will start paying for the advice and services of travel agents when the local travel industry introduces a zero-commission business model on May 1.
National carrier South African Airways (SAA) has become the first airline in SA to announce that it will stop paying commissions at the beginning of next month.
SAA commercial executive vice-president Adrian Hamilton-Manns, said the airline stood to save R500m a year after the discontinuation of the commissions.
Hamilton-Manns said SAA would decrease the price of air tickets 4% to partially offset the costs that travellers would
Travel agents to down shutters on April 8
Travel agents from across the country on Wednesday announced plans to down shutters for a day on April 8 to protest the reduction of commissions by international airlines. In addition, the agents have also decided to suspend the sale of Lufthansa tickets from April 9, a move that's threatening to derail overseas travel plans of scores of Indians.
"Our negotiations with the airlines have failed. While we will continue the suspension on Air-India ticket sales, the agents have also decided to stop selling Lufthansa tickets," a Travel Agents Association of India (TAAI) representative
Travel agents across the country on strike today
Nearly 2,200 travel agents across the nation will go on a one-day strike on Friday to protest Air-India’s plans to drop their commission from seven per cent to five per cent.
This was declared at a forum convened by travel associations including the Travel Agents Federation of India (TAFI), the IATA Agents Association of India (IAAI).
Ajay Prakash, chairman, western region, TAFI, said, “Travel agents generate around Rs 2,500 crore business for Air-India. By dropping commissions they are biting the hands that feed them.”
The agents have also decided to
Travel agents have proven to be far more resilient than they've been given credit for.
They've survived airlines cutting their commissions. They've weathered wars, SARS and economic downturns. And it appears they're holding their own against the biggest threat of all: the Internet.
With consumers booking their own travel online, conventional wisdom held the traditional travel agent was doomed to extinction.
The inroads made by big booking sites such as Expedia or Travelocity were surely the last straw.
But a study released this week shows the majority of Canadians trust their travel agent over their computer.
According to the Online Travel study by TNS Canadian
