Travel agents quitting as Quantas cuts their commission

Travel agents quitting as Quantas cuts their commission

Following the significant reduction in commissions revealed by Qantas and other major airlines, travel agents said they “may as well start packing up their desk now.”

The new Qantas commission rate, which was reduced from 5% to 1% on Friday, went into effect.

Late in May, Qantas became the first significant airline to announce a plan to reduce commission rates. However, Emirates, Air New Zealand, Hawaiian Airlines, Singapore Airlines, Cathay Pacific, and American Airlines soon followed.

Qantas has become the first major airline to cut travel agent's commission from five per cent to just one per centJodie Quick, director of Meridian Travel & Cruise, stated that the pitiful amount we would be paid by Qantas makes it “barely worth turning on the PC.”

She told SmartCompany, “Agents who don’t add fees, well, they may as well start packing up their desk now.”

According to Ms. Quick, travel agents are still feeling the consequences of Covid’s travel limitations, and the loss of commissions might be the industry’s death knell.

Since “there aren’t many of them left,” many agencies would now prioritize selling plane tickets that still pay commission, she claimed.

Director of Meridian Travel & Cruise Jodie Quick said the cut in commission could see many struggling travel agencies go underQuick access to knowledgeable assistance in an emergency is a major benefit of booking through a travel agency, according to Ms. Quick, who claimed Qantas’s phone service falls short in this regard.

After a disgruntled client made international news after waiting eight and a half hours on hold, Qantas added 750 call center employees in April.

The wait time has now decreased to three minutes, according to Qantas CEO Alan Joyce.

We think the call center is fixed now, Joyce said in late June to 2GB radio.

Ms Quick said Qantas's three-hour wait time at call centres won't be able to effectively manage traveller emergencies in the way travel agents do

‘Nobody waited over 20 minutes on Thursday, so it’s a big improvement … It’s better than it was before Covid.’

However, Ms Quick said wait times are still averaging about three hours and claimed call centre staff ‘know very little’.

She said if Qantas were to rely on staff who make crucial mistakes, ‘it shouldn’t be too long before the airlines in the ground’.

Daily Mail Australia has contacted Qantas for comment.

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