Amadeus has published a new research paper which found 34 per cent of travel agencies nominated the demise of airline commissions as the greatest challenge facing their business.
Titled ‘Service Fees and Commission Cuts: Opportunities and Best Practices for Travel Agencies’, the report also found agents can compensate for the loss of commission by adopting a service fee model.
The reportrecommends steps agencies can take when adopting a successful service fee model,including educating staff with training programs on service fee schemes, and letting consumers know about the service fee up front. “Research suggests that customers are willing to pay for a service they see value in,” the report stated.