Anguilla News covers Anguilla and the wider
Caribbean.
x
LIAT
Reviews Travel Agency Commission Structure
Date Posted: May 30, 2008.
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. 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.
