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TECHBITS.(INTERNET & TECHNOLOGY)
Byline: Doug Tsuruoka and Patrick Seitz
Hotwire CEO Sees Shakeout
Karl Peterson, CEO of online travel agent Hotwire, says a shakeout's looming following a move by big airlines to drop the base commissions they pay travel agents.
He says many traditional agents will be forced out of business by the step, while big travel Web sites will survive. "Mom and pop travel agencies are going to have a hard time competing," he said.
Most major airlines this month stopped paying the $10-$20 commission they customarily kicked out for each plane ticket sold. Carriers say it's a cost-cutting move.
Online and regular travel agents are retaliating …
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