Travel agents have been asked by the American Society of Travel Agents to close today between 1 p.m. and 3 p.m. as a response to the latest hit made on them and on the public by the airlines. On Aug. 17 American Airlines announced it would reduce the maximum commission paid to travel agents from $50 to $20 on any domestic airline ticket. Other major airlines have followed the commission cut initiated by American.
Not so long ago, the relationship between travel agencies, the airlines and the customer was a symbiotic one. The airlines paid travel agencies a fair commission to sell their flights, agencies ticketed approximately 80 percent of airline reservations, and provided a convenient service to the customer at no additional cost. Agencies did the work required to sell airline tickets and the airlines reaped the benefits of keeping employment costs down. The reward to both the airlines and the agencies was the return business of the customer.
Starting in 1995 the airlines have continually reduced commissions to travel agencies forcing them to charge service fees in order to survive. Even with these modest fees many have not been able to remain open. According to the Airline Reporting Corp. the number of travel agencies listed with them nationwide has declined from 23,937 in 1994 to 18,489 in 2000. It is estimated that this number will decline to 17,120 by year’s end.
Considering that over this same period of years there are many more people traveling by air, the rate of agencies closing is alarming and not a good sign for the consumer.
Why should the traveling public care that the airlines are reducing commissions?
As your travel agency struggles to keep its doors open, they will be forced to once again increase service fees. Even though airlines get benefits from travel agencies services they don’t want to pay for them. They want the public to pay for them. It is a sneaky way of putting more money in the airline coffers essentially raising airline ticket prices without showing the increase on the ticket.
Why does it matter to the traveling public that the airlines are impacting travel agencies negatively by cutting their commissions? There is always the Internet, one can call the airlines or go to the airport, right?
Aside from higher fares and fewer options, the answer is that when problems arise with tickets or travel plans the public will not have access to help or decent customer service if agencies cease to exist. The airlines will have the public at their mercy because travel agencies provide the last source of unbiased travel information. Contacting the airlines or going online can be very frustrating. Need help on a reservation? Good luck, if you haven’t used a travel agent often, it is next to impossible to get assistance from the airlines.
Forget getting a person to talk to you about your Internet booking. The time it takes to call, use the Internet or go to the airport can be enormously infuriating. Travel agents care about serving your travel needs, they are willing to watch out for you, work for you and with you. The less options available, the more money you will pay in the long run.
What actions is one able to take to help put a stop to the increase in travel costs and the decrease in unbiased travel information? Call Rep. John Baldacci at 942-6935 or e-mail him at Baldacci@me02 to share your concerns. Rep. Baldacci is supporting HR 1734, a bipartisan bill entitled, Airline Passenger Bill of Rights Act. The airline industry has fallen short with its promises and commitment to improve passenger service. Without passage of HR 1734, consumers can expect further deterioration in already unacceptable service.
Congress must act today by enacting HR 1734. And by all means, make it easy on yourself. Use your local travel agency.
Elizabeth Schneider is a travel agent in Orono.
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