Travel Agents to Protest Lower Fees from Airlines

The American Society of Travel Agents is asking agencies to close their offices for two hours Thursday in the first nationwide protest of reductions in fees paid to them by airlines.

The association wants agents to close their offices from 1 p.m. to 3 p.m. that day so agents can participate in political-action and consumer-awareness efforts. The Alexandria, Va.-based group represents about 15,000 U.S. agencies, or about half of the nation’s total, excluding online businesses.

Northwest Airlines Corp. and US Airways Group Inc. last week joined UAL Corp.’s United Airlines, Delta Air Lines Inc. and AMR Corp.’s American Airlines in reducing to $20 from $50 the maximum commission to travel agents for round-trip flights in the U.S. and between the U.S. and Canada. Airlines can cut costs by online sales, but travel agents sell 80% of tickets.

American, United, Northwest and US Airways wouldn’t comment on the travel-agent action. The Air Transport Assn., a trade group whose members include major U.S. airlines, also declined to comment. Delta wasn’t available.

The lower commission payments lead to higher prices for consumers and have reduced agents’ income, the travel agents group said. About 4% to 5% of travel agencies have closed in the last five years because of commission reductions, the association has said.

U.S. airlines first limited commissions for U.S. travel in 1995 and then cut commission rates to 8% from 10% in 1997 and to 5% in 1999. The most recent action by the airlines keeps the 5% but lowers the maximum payment.

The association also has said it plans to ask the U.S. Justice and Transportation departments for antitrust immunity next week so the agents can discuss further collective responses to the airlines’ reductions. The Thursday protest wouldn’t require immunity, said Paul Ruden, the group’s senior vice president of legal and industry affairs.