Travel Agents Across U.S. Assail United for Commission Cuts

Through postings on Internet travel sites, faxes and customer bookings, travel agents across the country are venting their wrath at UAL Corp.’s United Airlines for slashing the fee it pays them for selling tickets.

“United Airlines has been expelled from this travel agency,” declares a sign posted on the marquee outside John Shands’ agency in Brownsville, Texas.

“I’m sure my $50,000 in business isn’t going to make a whit of difference to United Airlines. But I’m just not going to support them any more on this,” Shands, who owns three travel agencies in South Texas, said in a telephone interview. “I will not suffer my financial death at the hands of corporate executioners.”

United announced plans Oct. 7 to cut agents’ commissions from 8% to 5%, a move that would save the airline $150 million a year. Since then, 16 other carriers have followed suit.

Travel agents say the airlines are trying to encroach on their business and force consumers to deal directly with the carriers, which could result in higher prices.

Antitrust law bars agents from acting together in an organized effort targeting United or any other carrier. But numerous agents boycotted after the previous three rounds of cuts--two initiated by United--and conversations in Internet chat rooms indicate such informal actions have resumed.

Travel agents were first jolted by commission cuts in 1995, after Delta Air Lines Inc. reduced fees for domestic tickets to 10%.

Two years ago, United chopped that to 8% and then followed in 1998 by capping commissions on international tickets at 8%. In the latest move, it lopped off another 3% while retaining a $50 cap on the amount it would pay agents per ticket.