A Windsor travel agent is frustrated by commission changes from a large airline.
Air Canada announced on Monday that due to higher costs across the board, as well as rising market uncertainty, they are changing their commission plan for travel agents.
Compensation arrangements do vary by agency but often hover between eight and 10 per cent of the base cost of a booking.
The lower rates are expected to take effect as of July 1 according to the Association of Canadian Travel Agencies and Travel Advisors.
Travel agents around the country say Air Canada cutting their commissions could put them out of business.
Sarah Hupalo, owner of Elite Travel in Windsor, says travel agents are used to working with large groups for events like weddings or conferences.
“Realistically the airline is not reducing the fare and the customer now is going to have to pay an agent an additional surcharge to have that group managed. So the cost really, I mean we’re getting less money and the consumer is going to end up paying more especially if they need services of a professional.”
She says in a crisis, travel agents do all they can for the client - especially when the airline isn’t offering support.
“If they can’t manage the number of calls when there’s an earthquake, or a hurricane, or a snow storm, or any other issue... if they can’t manage the number of calls and have a 12-hour hold time, or they hang up on you at midnight because the call centre is closed, or whatever it is, the agent is still on that phone until two in the morning to work with the client - so where is the compensation for that?”
Hupalo says she’s not sure she believes the reason given by Air Canada, such as higher fuel costs.
“I’m sure there’s additional costs now because they’ve had to increase the pay for some of their pilots and flight attendants, and fair enough. But we’re part of that travel food chain; we support them; we do a lot of the grunt work; and we’re essential support to travellers, and it needs to be valued.”
Canada plays host to nearly 27,000 travel agents, according to the Association of Canadian Travel Agencies and Travel Advisors.
The airline also recently trimmed its flight schedule and suspended its financial forecast for the year amid a prolonged spike in jet fuel prices caused by the closure of the Strait of Hormuz.
-with files from AM800’s The Shift with Patty Handysides