My guess is that most readers of this column know that airlines in general no longer pay travel agent commissions. Which is why travel agents in turn charge fees for booking airline tickets.
(Yes, there are exceptions, especially with international tickets and large agencies or consortia. But most of the time, it’s nothing.)
Now, in either a sign of how bad the economy is, or maybe a sign of things to come, or both, Delta Air Lines — the first airline to cut commissions in 1995 — is bringing them back.
The promotion only applies through June 30 from New York area airports to Mexico, the Caribbean and Latin America. But it’s across the board, for any travel agents — ten percent of the base fare before taxes and fuel surcharges.
Mexico travel clearly has taken a hit with the swine flu scare, but apparently Delta’s business to these other destinations is down. (I can guarantee you, this isn’t their version of charity or an economic stimulus.) Tickets to the U.S. and Canada, Asia and Europe still remain non-commissionable, though the airline does have contracts in place with some agencies for Europe.
What does this mean for consumers, other than possible help for their beleaguered travel agents? It could mean reduced service charges from agents selling those tickets. And no doubt other airlines will be watching this experiment with interest. If Delta takes business away from American and US Airways, their biggest competition in these markets, then other carriers may follow.
It is also possible that Delta could decide to expand the promotion to other markets. And while as a travel agent I’m not holding my breath, that will almost certainly result in lower agent fees. For cynics who say, why wouldn’t agents just pocket the commissions and charge the fees anyway: Some might, but the competition will assure that many will pass the break on to consumers.
