Be prepared for cuts: QF

QANTAS Executive Manager of Global Sales and Distribution, Igor Kwiatkowski, yesterday warned travel agents to ensure they are “operationally prepared” for the 01 Jul change to base commission, which is being slashed from 5% to just 1%.

An industry update from QF reminded the airline’s “industry partners” that all bookings must be ticketed on or before 30 Jun 2022 to be eligible for the current commission of 5%, with the 1% rate applying to anything ticketed on or after 01 Jul, including for any additional collection on reissued tickets.

“This is the first time Qantas has adjusted commission on international fares in more than 15 years, and to assist you with this transition, we have provided the industry with more than 12 months to prepare for the commission change,” Kwiatkowski noted, with the move first flagged in May last year (TD 20 May 21).

An FAQ document on the qantasagencyconnect.com website notes that the change applies to all QF International published fares (excluding transTasman) and Qantas Business Rewards International fares ticketed in Australia.

There’s no change to QF fares that are non-commissionable, including Australian domestic flights, trans-Tasman services, international fares with travel originating outside Australia and most private fares.

Qantas will honour the 5% commission earned on existing international bookings held in credit and reissued after 01 Jul, regardless of the number of reissues.

The carrier will continue to audit for over-collection of BSP commission, and will raise ADMs to recall commission that is no longer eligible to be earned.

Kwiatkowski concluded his email saying “we continue to recognise the unique contribution our trade partners make, and the bespoke and important service you offer our mutual customers”.

mEAnWHiLE a number of Travel Daily readers have written to us in response to the Qantas email, including Ian Mollison from Helloworld Travel Balwyn North, who has penned an open letter to Kwiatkowski published on

Now that you are up and flying again you reward us with an 80% pay cut, what an insult!

Ian Mollison is MD of Helloworld Travel Balwyn North in Vic, an industry veteran of 45-plus years. He’s penned this open letter to Qantas Executive Manager of Global Sales & Distribution, Igor Kwiatkowski, in response to the carrier’s reminder yesterday about the pending 01 Jul commission cuts (see p1). Got an opinion to share? Let us know in up to 400 words via email to feedback@traveldaily.com.au.

THAnk you Igor.

What used to be our mutual customers are now all yours – good luck.

For over two years we have provided a service to “our” customers which you have not been able to match in any way whatsoever.

All of the hours over the past two years that we have dedicated to problem solving on your behalf have been done with no remuneration at all.

Now that you are up and flying again you reward us with an 80% pay cut, what an insult!

I am relieved that I will not have to put up with the flight cancellations and the schedule changes that will now become your problem.

If you think that your systems and staffing are stretched now you don’t know what will hit you as our clients are directed to deal with you.

Take the latest example: clients confirmed from Honolulu to Melbourne via Sydney on 30 Dec.

Qantas has changed the departure time from Honolulu by two hours so that it is too late for a connecting flight to Melbourne.

The end result is that [the clients] are stuck in Sydney for the night, which happens to be New Year’s Eve!

Our issue is what happens now – find and pay for a night in Sydney on New Year’s Eve.

I look forward to the day that every person affected by situations like this have to be dealt with by Qantas, not your long-standing agents.

If we were booking these flights after 01 Jul, our remuneration would be $17.24 – and we would still be the ones sorting out your problems.

To employ a consultant with a cost of seat at $90k per year, (not that we would be able to find one) based on an average of 30% of ticket value being taxes the consultant would have to write $12m worth of tickets to cover their cost of seat.

I have been in the travel industry, actively selling Qantas, since 1976, and up until now have loved every day of my involvement in this wonderful industry but my very wise late father always said to me “son, if you go to work and don’t make any money – stay home”.

My clients have always known that they can call me any time of the day or night and I will assist them.

What a shame Qantas cannot offer the same service.

You have assisted my decision to leave the industry, which is the only thing that I can thank you for.