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Agent InsiderFebruary 4, 2008 By: Travel Agent Central Contributor Travel Agent
Do you have a concern that suppliers in the industry will move away from a commission structure and move to a net-rate structure?
"I think that products in our industry should be sold wholesale like other retail concerns," says Mike Greenwald of Personalized Travel Inc. in Oakland Park, FL. "Then I could make my markup based on the marketplace. This is a different way of approaching business and many agents probably will say they are uncomfortable with it. I would welcome it. I value my own worth to my customers."
"For a while after the airlines cut us to zero commission, I was watching to see if any of the operators would do the same," says Joanne Gardner of The Travel Specialist in Wheaton, IL. "I think they would like to go that route—net rates—but it would take a brave operator or cruise line to take the first step. The consortia are all set up with preferred agreements, and what would happen to them if suddenly things were on a net basis? I'm not sure the agency community in general is prepared to do business on net rates. You need to be a smart marketer to survive, but it would certainly weed out those who are not very serious about making a living in the travel business."