Internet hitting travel agents

Oct 11, 05 | 7:49 am

Travel agents will soon have to charge clients for their advice to compensate for profits lost to internet bookings and airlines slashing commissions.

Despite a tourism boom, business analysts IBISWorld said travel agents were struggling as more people booked holidays – particularly domestic airfares – over the internet.

This has forced the airlines to slash the commissions they pay to travel agents from five to 1 per cent or to zero.

IBISWorld general manger Australia Jason Baker said as revenue growth in the sector remains flat, many operators will have slug clients with service fees.

"They'll probably charge a couple of hundred dollars and in doing that, they'll hunt around for the best fare so the consumer gets the deal that's best for them, rather than the current deal that gets the agent the best commission," he said.

Source:  Daily Telegraph