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BA Announces Move to Cut Agent Fees and Encourage Customers to Book online

Hotel Booking The cost of flying looks set to rise again after a move by BA to cut the commissions it pays to agents in order to reduce its distribution costs and improve profitability. From December 1, 2003, the airline will introduce a commission based payment scheme of 1% for UK travel agents who make British Airways' bookings. This replaces sector payments, which were introduced in April 2001.

'Split Payment' On Holidays Launched For The First time Online Expedia.co.uk today becomes the first online travel agent to allow customers to split the payment on their holiday bookings in a move to give greater flexibility and choice for travellers and enabling people to travel at an affordable price. Customers booking an Expedia flight and hotel or flight, hotel and car package will be given an option to pay a deposit rather than having to find the full cost of the holiday at the time of booking, making it easier and more affordable than ever for people to let themselves go on holiday in 2006.

Travel Agency BA aims to cut its distribution costs by 100 million and encourage more people to book over the internet. Agents have reacted with anger to the news and say that these costs will ultimately be passed on to the customers, who will now have to pay a service fee when it comes to buying a British Airways ticket.

The fee a travel agent charges really depends upon the agent. While some of the more luxury agencies have higher fees, the average fee is quite marginal. Some travel agents will even drop the fee or offer a discount once you have finalized your trip with them. Plus, you can always ask an agent upfront what their fees are and decide for yourself if it’s worth it. Also, it is important to remember that a lot of online booking sites, such as Orbitz and Expedia, charge a booking fee as well.

Cheap Hotel ABTA is very disappointed by the news and believes the cut in commission constitutes such a big drop that agents will not be able to absorb. They say they were not consulted over the change and cannot support the initiative.

Except for telephone bookings made through one of our authorised Travel Agents, we will endeavor to send this to you within 7 days of receiving your booking. For telephone bookings made through Travel Agents, your booking is confirmed when we verbally confirm your holiday to your travel agent. A contract between us comes into existence when we despatch our confirmation invoice to you or, for telephone bookings made through a Travel Agent, when we verbally confirm you booking to your Travel Agent.

Flight Booking Last year ABTA challenged BA's reduction in sector payments on competition grounds and complained to the OFT. However, the OFT concluded that BA were entitled to reduce their commission level as agents were able to add their own mark-up or service fees to BA's fares.

Travel agents obtain some of their information from the same sources as online booking sites such as Orbitz and Travelocity. They also receive daily emails and faxes with new specials from resorts and hotels that may not be published on the internet. Travel agents can also call a place directly to see if they can work out other kinds of special deals for you, something an online site can’t do.

Travel Agent BA has changed its commission structure several times in the last few years causing bad feelings amongst agents and driving many customers to other carriers.

Book your room at one of the finest hotels Boston can offer on our web site with no booking fees and be guaranteed the lowest rate online.

Hotel Chicago Tiffany Hall, British Airways head of UK & Ireland sales and marketing, said: "Rapid changes in market conditions over the past year have accelerated the need to reduce our distribution costs further in order to restore profitability and ensure our survival.

Online Booking "The business environment is even more challenging now than when our Future Size and Shape review took place in February 2002 and our business plan to 2005 is focused on cost reduction and business simplification.

Travel Health Insurance "To support our strategy to offer full service at low fares, we must compete more effectively with no frills carriers who pay nothing to travel agents. We have lowered our fares during the last 18 months and to sustain these lower prices, we must reduce our distribution costs further," said Hall.

Hotel Reservation "We are committed to offering customers a choice of ways to book British Airways- through travel agents or directly with British Airways. For those who choose to book directly with British Airways, the lowest advertised price will be available on ba.com."

London Hotel Booking BA used to pay agents between 7 and 9 per cent for each ticket sold, which was switched to a flat fee of between 6 and 20 per ticket depending on the destination and class of travel. Now BA wants to pay 1 per cent of the ticket price which would average a 2 fee.

Discount Travel Mr. KC Ong at Sagitta Travel told Internet Travel News that he was not at all surprised by BAs move. I dont think BA is a national airline that looks after the travel agent. This move will make the environment even tougher for high street travel agents and many will be forced to close.

Orlando Hotel We have spoken to many competitors and it is agreed that we need a minimum 15 per booking to survive. This means that we will have to charge customers a service fee, or turn customers away. We no longer recommend BA flights to our customers.

Booking Agency "Technology is improving each day and as consumers get used to the internet they are increasingly opting for this medium whether or not airlines encourage them to book online.

International Travel Medical BAs move has certainly sparked a lot of controversy and it will only be a matter of time before other airlines follow suit. BA is competing aggressively with the no frill carriers, yet it still claims to be a full service airline. Meanwhile it is travel agents who will be the hardest hit by these latest developments.

New York Hotel What should agents do when travellers ask them to book flights? Should they send customers to the Web, where the airlines want them to go and where they may realise that they dont need travel agents after all? Or should they continue to help travelers find the best flights, even though they are no longer being paid enough to ensure their survival?

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