2000 Travel News ArchiveTravel

Travel agents battle AA over their commissions

Travel agents and American Airlines are at war in the DR. The airline that operates most of the flights between the DR and the United States, wants to reduce travel agent commissions from 10% at present, to 6%. The travel agents commission is frozen by a ruling by the Civil Aviation Board. AA says that deregulation and reduction of travel agent commisions is a worldwide measure implemented to guarantee competitiveness of the airlines. The airline argues that the travel agents need to depend less on airline commissions and more on sources such commissions for cruise lines, excursions and hotel packages. Local travel agent associations point out that travel agents in Ecuador, Uruguay, Colombia, Venezuela, Chile and Panama have successfully contested the AA intent to reduce commissions. The Dominican travel agents say that the AA argument is not valid in the DR, which they say is the most profitable route for AA. (9 March 2000)