The American Society of Travel Agents (ASTA) expressed disappointment over the announcement by Southwest Airlines that the carrier will no longer pay commissions to travel agents. …
The American Society of Travel Agents (ASTA) expressed disappointment over the announcement by Southwest Airlines that the carrier will no longer pay commissions to travel agents. Southwest made the announcement,when it released its quarterly earnings report.
Southwest`s decision was inevitable. The airline held out for quite a while, but it has been incurring costs that its competitors have not, said ASTA President and CEO Richard M. Copland, CTC. It`s past time to move on.
This move further illustrates why it is so important for travel agents to adopt new business practices, such as niche specialization, and to continue streamlining their agency`s operations, continued Copland. Moreover, it shows again why ASTA membership is so vital to today`s successful travel agency-programs such as the Model Agency Program provide them with the skills and knowledge they need to thrive and prosper in the face of still another commission cut.
Despite commission cuts, bypass strategies, the Internet and economic dislocations, consumer demand for the core personal counseling services of travel agencies remains strong. The key is adaptation. That is our challenge and we will accomplish it, Copland said.
Delta Air Lines was the first carrier to cut travel agent commissions to zero in March 2002. Other major airlines soon followed suit, except Southwest.
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