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Travel agencies face airline commission cuts. (commission cutbacks)

South Florida Business Journal

| April 03, 1998 | Millner, Marlon | COPYRIGHT 1990 South Florida Business Journal, Inc. (Hide copyright information)Copyright

Area travel agencies continue to struggle to cut costs and tap new markets as major airlines have lowered the percentage commission they pay these firms for domestic ticketing.

In 1995, Delta Airlines led the charge, capping the standard 10 percent commission at a maximum of $50. Two years later, United Airlines led the way with another round of cuts, this time lowering the commission percentage to 8 percent.

Although some discount air carriers, such as AirTran and Southwest Airlines, have continued a policy of straight 10 percent commissions, many travel agencies said discounters are not the bread and butter of their airline business.

Further squeezing …

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