Travel Agents Upset With Capped Commissions Set By Delta

Travel Agents Upset With Capped Commissions Set By Delta
 

February 1995, Delta Air Lines and other major US carriers face a legal challenge from the American Society of Travel Agents, following their decision to cap the commission paid to travel agents. On February 9 Delta announced that it would continue to pay the basic ten per cent commission on fares, but only up to a maximum of $25 for any one-way domestic ticket and $50 for any round trip domestic ticket; soon after this the other majors followed.

The travel agents have argued that the result will be that jobs will have to be cut and some companies will go out of business. Some travel agents have started a war by booking "ghost" passengers on flights and calling airline switchboards en masse thereby preventing genuine passengers from getting through.

 
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