A Canadian

Vic<BR><BR>Some large agencies in Toronto are advertising no service fees on airline tickets in the Sunday papers. How can they do afford to issue tickets without a service fee if they don't receive commissions from airlines?

captain

Because the commission "ban" only applied to tickets sold in the US and its possesions...mostly. Tickets done in another country...ie Canada...still are commissionable in the wise eyes of the airlines.<BR>

Vic

<BR><BR>Major US and Canadian airlines don't pay base commissions in the US or Canada. They do pay "overrides" which are commissions based on volume. Depending on many factors the airlines pay anywhere from 3% to 8% to their volume distributors which are the large mega brick and mortar and internet agencies.<BR><BR>Many megas are featuring service fee free tickets for the following reasons:<BR><BR>The more tickets they issue the higher percentage their overrides<BR><BR>They hope to attract new customers that will come back and buy more profitable wares like cruises and vacation packages<BR><BR>Smaller agencies don't qualify for overrides so the megas use service fee free as a competitive weapon.<BR><BR>Here's a tip.<BR><BR>Foreign carriers still pay North American travel agents commissions. For example, All Nippon Airways, a major Japanese carrier, pays 8%. It's a greedy agent that tries to sell you a ticket on a foreign airline and also charge a fee.<BR><BR>Many far eastern carriers give 20% to 40% discounts to select travel agents that bring them lots of business. The ethnic travel agents tend to share a large portion of these savings with their customers. If you live near a large Chinatown like LA, San Francisco, Vancouver, Toronto, NYC go might try an ethnic agency if you're planning to travel to the far east.<BR><BR>Lastly, because of the weak Canadian dollar, fares out of Canada tend to be cheaper than out of the US. If you live near the border like in Seattle or Detroit you might price a Canadian ticket. The ticket must be purchased in Canada either from the airline or a Canadian travel agent.

talk about greedy

It's a greedy agent who charges $200 an hour. After all how long does it take you to book a cruise? I would laugh at a travel agent charging that much. Do you think you are a lawyer?

xxx

Amd to top that off..Vic stated yesterday that he only booked for his friends and family! Now that is greedy! Charging those outrageous fees to "friends and family"!

JADJAN

In response to the NO SERVICE FEES in CANADA -- our US CARRIERS STILL PAY 9 % COMMISSION TO ALL FOREIGN TICKETING AGENCIES! How American is that! <BR>Now if you don't think the taxpayer will start paying for this decision that the airlines have bestowed on the travel agencies then....... read this article that was published by TRAVEL WEEKLY - ON THE LOCAL TEXAS GOVERNMENT TRAVEL! Who do you think in the end will be absorbing the service fees??? THE TAX PAYERS OF COURSE ..... YOU AND ME!<BR>NEWS - Agent Issues<BR><BR>Texas balks at paying service fees to agencies (4/9/2002)<BR><BR>By Laura Del Rosso <BR><BR>AUSTIN, Texas -- Travel agencies under contract with the state of Texas are reconsidering those agreements after the state adamantly refused to pay service fees on airline tickets for employee travel. <BR>Because of that stance, the state lost two of its 13 contracted agencies -- and at least one other is considering dropping the state as a client. <BR><BR>"We're not going to work for free," said Jerry Haunschild, Brush Country Travel, Kingsville, Texas. <BR><BR>The state of Texas did not allocate any funds to pay travel agents in its budget and does not want to pay any fees because they will increase travel expenses for the state, which already pays $50 million a year for employee travel, said a spokesman for the Texas Building and Procurement Commission. <BR><BR>"The legislature in Texas meets every other year so perhaps when it meets in 2003 agents can go to committee hearings and try to get funds" for service fees, he said, estimating that service fees would total more than $1 million a year. <BR><BR>But the spokesman's estimates may be low. According to the state, travel agencies handle 231,000 air transactions for employees each year. Even with a conservative $10 per ticket charge, annual expenses for the state would be well above $2 million. <BR><BR>How many other states have budgeted in service fees for ticketing?<BR><BR>REMEMBER THE COMMISSION CAP APPLIES TO ONLY STANDARD TRAVEL AGENCIES ! NOT CONSOLIDATORS AND MOST AIRLINES DO NOT ALLOW YOU TO EARN MILEAGE FROM CONSOLIDATORS! --- SO THE BIG GET BIGGER- CONSUMER GETS THE SCREW AGAIN!<BR><BR>

Vic

I don't know if it's stupidity or cupidity or just desparation but these agents really are nuts.<BR><BR>Our major airlines are international carriers, they need business from foreign travelers as well as Americans. If they didn't pay the going rate in foreign countries, no travel agent would sell our carriers. It has nothing to do with patriotism.<BR><BR>The State of Texas is subject to the economy. If oil companies raised their prices would the Texas have any more right to complain than the average motorist.<BR><BR>What garbage.