D-Day arrives for agents

YESTERDAY was the final day before many carriers in the Australian market slashed base commission payable to the travel agents who sell their products, with the change expected to drive significant evolution in the local industry.

The collapse in travel agency base remuneration was led by Qantas, which announced the move more than a year ago

(TD 20 May 2021), at the time assuring its long-time supporters that “travel agents remain an important partner”.

The Qantas initiative was followed in quick succession by a host of other carriers including:

• American Airlines (TD 10 Jun 21)

• Air NZ (TD 10 Dec 2021)

• Emirates (TD 17 Dec 2021),

• Cathay Pacific (TD 14 Jan),

• Hawaiian Airlines (TD 20 Jan)

• Singapore Airlines (TD 31 Jan)

• Etihad (TD 03 Mar)

• Thai Airways (TD 31 Mar)

• British Airways (TD 01 Apr)

• SAA (TD 23 May)

Carriers which have confirmed they are continuing to support the trade by paying base agency commission include Air Canada (TD 15 Jun), Qatar Airways and Delta Air Lines (TD 19 May).

A number of Travel Daily agency owner readers have noted that from today they will actively switch selling clients towards supportive airlines, while other responses will see advisors forced to impose additional service fees on itineraries involving commission cutters.

Flight Centre MD Graham Turner is expecting carrier market shares to shift, recently noting during an event to celebrate the company’s 40th anniversary (TD 11 May) that “the reality is, if airlines don’t pay for the distribution of their product, intermediaries will move the sales onto other airlines who do pay.”