Travel brokers look so as to add service charges as airways slash commissions


Our nationwide provider has simply taken the hammer to journey brokers. Starting July 1, 2022, Qantas has slashed the fee it pays brokers on air tickets. Instead of 5 per cent, the speed is now one per cent. Qantas will not be alone. Emirates, Air New Zealand, American Airlines and British Airways are all among the many one percenters, whereas Qatar Airways, Delta and Lufthansa all pay 5 per cent.

Qantas flagged the transfer properly prematurely, however journey brokers are livid. Dean Long, CEO of the Australian Federation of Travel Agents, says it is yet one more blow to brokers as they battle to get well from the just about complete shutdown of their trade. That contains offering unprecedented ranges of help to shoppers.

“Travel agents and businesses have been picking up more and more of the customer support role and challenges created by flight delays, cancellations and travel requirements,” Long says.

“While some airlines like Qatar and Air Canada recognise this additional support by keeping commission levels stable, other airlines haven’t. On top of these mammoth increases in workload many travel professionals have introduced service fees to allow this level of support to continue.”

With earnings from air ticket gross sales within the trough and flight delays, cancellations and sophisticated guidelines round COVID-19 requiring extra time per shopper, an growing variety of journey brokers are taking a look at service charges as the one approach to survive. Some shoppers may resist and deal with their very own bookings, and if it is a flight to the Sunshine Coast for per week of solar, that makes excellent sense. Anything extra difficult and also you in all probability want a journey agent.

As Long says: “As pretty much anyone will tell you who’s travelled recently, if and when something goes wrong, without a travel professional, you’re on your own. Your travel agent can help you find solutions to delayed and cancelled flights, find the right insurance and help you navigate the complexities of refunds and credits.”

You have to wonder if this can be a good play by Qantas. Bottom line, on a $2000 fare to Europe or North America, an agent can promote a Qantas ticket and earn a fee of $20, or steer the shopper in the direction of Qatar or Delta and pocket 5 instances as a lot.