Some Consolidators, Charter Firms See Spike

NEW YORK -- Some air consolidators and charter package operators reported a rise in business after the latest airline commission cuts.

Others said they already were operating at capacity before the cuts, so they can't measure any increase in demand.

Apple Vacations was one of those consolidators that experienced a spike in business, according to Tim Mullen, director of marketing and sales.

"The initial reaction we heard from our salespeople was that agents were up in arms [over Delta's move to zero-base commission], and everyone was asking [which airline] would be next," said Mullen. "Then as more airlines matched, sales started to come in."

Apple's charter business has been in a sustained growth mode, and Mullen said he thinks Apple's maintenance of 10% commission and its agent-only-booking policy are helping.

Ken Pomerantz, vice president of marketing and sales for MLT Vacations, said he expects an increase in demand from agents but can't measure it because MLT's charter business was operating at near capacity before the cut.

Sun Country Airlines, formerly a charter carrier, is operating scheduled routes from its Minneapolis hub and has maintained commissions of 5%.

Tammy Lee, vice president of corporate affairs, said bookings have been steadily rising since the major airlines cut commissions to zero.

"We have seen a continuous increase in bookings through the GDS," she said.

Aimee Wyatt, vice president of Air by Pleasant in San Diego, said the consolidator added four more reservationists to meet increased demand.

Wyatt added the company is seeking new consolidator contracts to meet agents' requests to expand into domestic air.

Destination Europe Resources (DER) said demand was so high before the last cut -- with 3,500 to 4,000 calls a day for air only -- that it is impossible to tell if it has increased since the latest airline cuts.

Picasso Travel, a consolidator based in Los Angeles with six other U.S. branches, is looking to hire six more reservationists for its New York and Los Angeles offices.

Demand in those cities is "going crazy" since the zero commission announcements, according to Eren Aksoy, vice president. "We are in dire need of more seats," he said.

Brendan Tours' air consolidation department in Chatsworth, Calif., sells tickets at net rates on behalf of 27 airlines, according to vice president Whitney Ramirez.

Ramirez said she expects demand to increase because of zero commissions, and there are plans to increase reservation hours should a sharp spike occur.

"Keep in mind that we have additional and separate contracts for our tour-FIT side on which we still pay 10% commission from all gateways," she noted.

AirTreks, a consolidator specializing in around-the-world and multileg international air travel, started paying 5% commission on its net fares to agents.

The company said its existing Travel Agent Program, which enables agents to add their own mark-up and set retail prices themselves, remains intact.