MAJOR US AIRLINES have imposed caps on travel agent commissions, to lower operating costs. Delta Airlines was the first to limit the fees, but American, Northwest, USAir, United and Continental soon followed.
The measure, which was attacked by travel-agent groups who say it may put them out of business, holds commissions to $50 for domestic round-trip tickets and to $25 for one-way domestic tickets.
Delta, which has been paying travel agents 10% of a ticket's price, says that ticket commissions are the third-largest expense behind payroll and fuel. Northwest says that commission expenses have grown faster than revenues.
The American Society of Travel Agents may complain formally to the US Justice Department.
Source: Flight International
