With the airlines scrambling to get more business- and first-class passengers — well any class of passengers — commissions are creeping back into the picture for travel agencies. This shift only makes sense as airlines jockey for more share of a shrinking market.
Back in Britain, British Airways has reinstituted “incentives” for transatlantic routes that were dropped a decade ago. I expect that competing airlines will start adding incentives as well to level the playing field.
Here in the United States, some travel agencies are reporting similar new commissions being offered especially for business-class travel.
If the downturn in travel continues, I expect airlines to go back to the distribution channel that sells the most tickets, hat in hand, and start offering limited commissions to move market share.
We can also probably expect more action in the consolidator market for business-class tickets as well as leisure travel. Those actions will yield commissions as well.
It will be good for agencies and travel management companies and good for the airlines. Imagine that.
