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September 2022, Virtual
September 29 2022, Virtual
Global distribution system provider and Travelport subsidiary, Galileo, has produced a white paper to assist travel agents in Asia who have yet to face zero commission on their bookings.
”Moving to a Service Fee Based Model” draws on experience of agents in Singapore, Australia and New Zealand and is designed to help those in the region cope with the increasing number of airlines eliminating commissions by giving advice on other revenue opportunities.
”The steady trend for airlines to eliminate commissions market by market will continue unabated,” said Galileo marketing director Asia Pacific, George Harb. ”Galileo believes it has a fundamental responsibility to help customers adapt to change in a way that not only ensures their continued viability, but helps them achieve even greater revenue growth.”
According to Galileo, Singapore was the first in Asia to experience zero commission, when Singapore Airlines followed the path of many US and European carriers and removed commission from all published fares in late 1999.
”By talking with agents who have coped in a reduced commission environment, we have identified steps which not only include the charging of service fees, but also the re-education of staff to provide professional services which can be clearly identified by the customers as adding real value,” said Harb.
The white paper details the types of fees agents could charge for ticket or itinerary alterations, fare increases or airline penalties and consulting costs for complex itineraries. It also outlines how to approach occupying a niche in the market by specialising in a particular destination, market segment or ethnic group.