'Ba siuess

Future Flying?

Crashing commissions
force area travel agents
to rethink the future as
well as processing fees.

DAVIDSON SKLAR
• Special to The Jewish News

•

after the announcement that they
would not add fees onto consumers'
tickets, many have begun tacking on
processing fees of $5 to $20 per ticket.
"Can you live with a 20 percent cut
in your income?" said Gail Shapiro,
owner of Summit Travel in Farming-
ton Hills. "There is no way we can
continue the way we have."
While the fee addition has worked
for some agencies, others have
changed their marketing by moving
away from corporate travel.
Shifra Zwick of Doneson Travel in
Southfield plans to push for more of
the leisure travel business, such as
groups and cruises, while maintaining
her corporate client base.

ooking back, Judy Schwartz
wasn't all that surprised by
the recent announcements
by many major airline carri-
ers that they would reduce commis-
sions to travel agents.
In recent years, airlines have
reduced or discontinued
the perks offered to
agents, such as free round-
trip tickets. In addition,
automated kiosks at air-
ports allow travelers to
process their own transac-
tions in exchange for fre-
quent-flier miles.
Two years ago, airline
carriers announced a cap
on agents' commissions of
$50 per ticket, a move
that cost some agencies a
great deal of income.
When the airlines
announced almost two
months ago another cut in
commissions, the future
of travel agencies in.
America seemed suddenly
Gail Shapiro: "We can't continue the way we have."
darker, less certain.
"It is scary," said Judy
Schwartz, owner of Trans
"The bread and butter has been
Global Travel in Farmington Hills. "I
corporate travel," she said. "We are
mean, it makes you wonder what is
going to have to expand our group
next?"
and cruise department but that is not
No airline would comment on the
to say that we will not do corporate
cut, which is a 20 percent reduction in
accounts."
the commission rate, from 10 percent
The shift is in part due to the larger
of a ticket's face value below the $50
and more consistent commissions
cap to 8 percent. Although many
from the cruise lines and hotels for
travel agency owners swore in the days
booking such trips, the agents say.

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