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Card Fees Next Airline Cost Target SPONSORED BY THE AMERICAN SOCIETY OF TRAVEL AGENTS.

Publication: Business Travel News
Publication Date: 08-OCT-07
Format: Online
Delivery: Immediate Online Access

Article Excerpt
Airline carriers are looking for the next big opportunity to achieve savings. Having already cut labor, commissions and GDS costs, the airlines now have credit card fees in their sights as the next viable target.This is particularly high on the radar screen as credit card fees continue on an upward trend.The largest expenses incurred by the airline industry, after labor and fuel costs, are their distribution costs, which include travel agency commissions, GDS fees and the merchant discount rate paid to their banks.

For air-only purchases, the merchant discount rate fees can range from 1 percent...

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