LIAT Reviews Travel Agency Commission Structure
Basseterre; ST. Kitts - LIAT (1974) Ltd has decided to review its commission structure to travel agent partners, as the Caribbean airline strives to remain viable in an industry hard pressed by rising fuel and other operating costs.
Effective July 1, 2008, LIAT will only pay a commission to Travel Agents using the LIAT Agency Web Portal and will discontinue commissions on all bookings made through the GDS (Global Distribution System).
In addition, the commission level currently offered to all Travel Agencies in the region using the LIAT Agency Web Portal will be set at five percent, as the introductory incentive paid for agents using Navitaire since its introduction in 2005 will now be removed.
Commenting on the development, LIAT Chief Executive Officer, Mark Darby said the removal of an introductory incentive commission, previously paid to encourage migration to the Navitaire system, had always been intended as a short term initiative.
To assist Travel Agencies in the transition to a new commission structure, LIAT has pledged to implement Performance and Seasonality based schemes such as incentives, overrides and bonus commission programmes. ~~Adz:Right~~
The CEO said “the airline believes that travel agents are now proficient in the use of the LIAT Agency Web portal which has been available since 2006 and as such they would be more comfortable with its use, through which they could continue to earn commissions, particularly in an international industry context where travel agency commissions were being discontinued by most airlines”.
Leesa Parris-Rudder, LIAT’s Chief Commercial Officer, noted that travel agencies across the world had been innovative in adapting to new commission structures, adding this was also the case in the Caribbean region.
“We appreciate that Travel Agencies have also been forced to adapt to the new commission structures, by finding innovative ways to sustain their profitability and viability including the implementation of Service Fees, Consultant Fees and Change Fees. This has proven successful for agencies worldwide, which have also modified their business models to improve profitability and enhance service levels to their customers, since commissions have been removed in many international markets.”
LIAT recognises travel agents as industry partners and is looking forward to a continued close working relationship, and is committed to improving its quality of service to the travelling public.
