PPRuNe Forums - View Single Post - UAL to file Chapter 11 this week.....
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Old 23rd Jan 2002, 13:00
  #34 (permalink)  
Andreas in SAF
 
Join Date: Jan 2002
Location: Santa Fe, New Mexico, USA
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It's interesting to read about the many reasons why United (and other US airlines too) have such financial problems. . . . .One major reason, which is never mentioned here, but which I am very well aware of - being a travel agency owner - is that the US airlines have alienated their distribution system, by not only cutting commissions to near zero since 1995, but also bullying the travel agency community with their arrogant behavior (and- United is one of the leaders, trying to run travel aegncies out of business).

You see- when people are afraid of flying then they will not buy an airline ticket just because there is a special deal on the internet - they still will not fly. But- when sitting down with another person, your favorite travel agent, and discussing your fears and concerns, you may very well end up with an airline ticket to a far away destination. Some of us are fearful fliers ourselves, but can persuade customers to fly, since we can symphathize with them. But - we can't do it for free.

Example: The cruise lines have lowered rates and increased commissions, to lure travalers back after September 11, and the ships are sailing full. They know that you get more business by incentivizing your sales force.

Airlines, especially since they got the 5 billions from the taxpayers, behave more arrogantly than ever, and have actually increased their hostility against travel agents, since September 11.

The result is absolutely no motivation for us to sell their services. Example: being originally from Austria I loved selling ski vacations to the Alps. Now, if someone books a ski vacation, we mostly send them to Colorado (they drive!!!) . .and we book them a nice condo.

Result: Customer does not worry about flying, our travel agency earns a commission and can stay in business, we avoid shabby treatment by the airline, and - airline has just lost another sale.

Show me ANY other business where the principal treats their agents so badly! There isn't any!

The bean counters at United and the other US airlines think that above lost sale was actually good, because it saved them the commission to the agent (average 3.5%!).

Businesses like that deserve to go out of business!
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