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Air Canada Cuts Travel Agent Commissions in Bid to Lower Costs, Industry Group Says
The airline said higher costs and market uncertainty pushed it to cut agent payouts as industry groups warned of lower income for thousands of workers.
- Air Canada will reduce travel agent commissions effective July 1 in a cost-cutting move that could hurt the income of thousands of industry workers throughout Canada.
- Higher operating costs, market uncertainty, and artificial intelligence, 'which promises to reshape the whole travel ecosystem,' pushed the airline to change its compensation plan, company officials said Monday.
- Commissions often hover between 8 and 10 per cent, but many agents report cuts to between 3 and 5 per cent, threatening a 25 per cent loss in Air Canada-related revenue.
- Canadian Travel Agencies president Suzanne Acton-Gervais warned the changes threaten long-term agency viability, while Brenda Slater called the reduced rates 'a little bit of a smack' in a phone interview.
- Travel advisers are carefully monitoring suppliers to determine 'who's going to service our clients the best,' Slater warned, noting carriers failing to support them may lose business from the country's nearly 27,000 agents.
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17 Articles
17 Articles
Le Journal de MontrealReposted by 
Le Journal de Quebec
Le Journal de QuebecAir Canada has announced to travel agencies that it will reduce their commissions starting in July to offset the increase in fuel prices.
·Montreal, Canada
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Air Canada has announced this month to travel agents that it will reduce their commissions as part of a cost reduction measure.
·Montreal, Canada
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Travel agents indicated that Air Canada is reducing their commissions, a measure that threatens to push some of them into bankruptcy.
·Montreal, Canada
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Total News Sources17
Leaning Left7Leaning Right2Center5Last UpdatedBias Distribution50% Left
Bias Distribution
- 50% of the sources lean Left
50% Left
L 50%
C 36%
14%
Factuality
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