|
Article Excerpt
Research by Business Travel News showed a year-over-year increase in average travel agency transaction fees for both small and midsize companies, largely a result of last year's cut in base commissions to zero. Midmarket fees hover in the low $30s, sources said, but agency contracts can take on so many forms that there really is no norm.
Meanwhile, there is no lack of talk about how important midmarket firms have become to travel management companies.
"It doesn't surprise me that these numbers went up," said Corporate Solutions Group's Thorn Nulty. "Many customers' transactions dropped, and some pricing arrangements require the fees to go up when transactions go down."
The influence of fixed costs amid lower transactional trends also rears itself in the form of retained agent positions, account managers and/or onsite operations, which are popular in the midmarket.
Nulty also cited the impact of lower revenues in cases where fewer transactions can affect, say, override payments.
"In calculating what the net fee ends up being, many arrangements give back commissions, sometimes overrides and, in some cases, GDS and other fees," he said. "As...
|
|
More articles from Business Travel News
Co. mandates registration with mtgs. dept. (Managing Meetings At: Aon ..., July 07, 2003
Amex angles for expenses. (News)., July 07, 2003
Disney Institute also heads West. (Meetings Beat)., July 07, 2003
Poll: planners using more mtg. data consolidation tools. (News)., July 07, 2003
Phila. welcomes birth of Constitution Ctr. (Destinations)., July 07, 2003
Looking for additional articles?
Search our database of over 3 million articles.
Looking for more in-depth information on this industry?
Search our complete database of Industry & Market reports by text, subject, publication
name or publication date.
About Goliath
Whether you're looking for sales prospects, competitive information, company
analysis or best practices in managing your organization,
Goliath can help you meet your business needs.
Our extensive business information databases empower business
professionals with both the breadth and depth of credible,
authoritative information they need to support their business
goals. Whether it be strategic planning, sales prospecting,
company research or defining management best practices -
Goliath is your leading source for accurate information.
|
|
