October
8, 1999
Press Release from American Express Corporate Services
American Airlines Matches Commission Reduction
Today,
October 8, 1999, American Airlines announced that it has
matched the travel agency commission cut that United Airlines
imposed on October 7, 1999.
Travel
Agency commissions will drop from 8 percent to 5 percent
for all domestic and international tickets purchased in
the United States and Canada, effective October 9, 1999,
at 12:01 a.m. central daylight time.
Domestic
All American Airlines tickets purchased in the United States
for domestic travel (including Puerto Rico, Washington DC,
and the US Virgin Islands) will earn a 5 percent base commission
rate, with a maximum payment of $50 for round trip travel
or $25 for one way travel.
Canada
The Canada base commission program pays a base rate of 5
percent, with a maximum payment of $70 CAD for round trip
travel or $35 CAD for one way travel.
International
The international base commission program also pays a base
rate of 5 percent, with a maximum payment of $100 US or
$140 CAD for round trip travel and $50 UD or $70 CAD for
one way travel.
The
actions taken by American and United equate to a price increase
for their business travel customers.
It
remains unclear whether other carriers will follow American
and United. American Express is beginning to analyze the
impact of this cut and is preparing for possible moves by
other airlines. We will keep you apprised of any new developments.
Please
contact your American Express representative with any immediate
questions or concerns.
October
8, 1999
Press
Release from Rosenbluth International
American
Airlines Announces Commission Cuts
American
Airlines has announced that effective midnight tonite, they
will decrease travel agent commissions to 5 percent base
for all transactions, both domestic and international. For
domestic travel, there will be a maximum 50 USD cap imposed
on roundtrip tickets and 25 USD cap on one way tickets.
For international travel, there will be a maximum 100USD
cap on round trip tickets and 50 USD cap imposed on one
way tickets.
Rosenbluth
International will conduct impact assessments for clients
affected by American Airlines' commission restructuring.
Rosenbluth International anticipates that other airlines
will continue to follow this trend in further reducing commissions.
We will continue to monitor this development and keep you
informed of all situations impacting travel.
