UNITEDAirlines vice-president Atlantic Judy Bishop said agents have nothing to fear from the carrier’s plans to launch on-line bookings for UKpassengers this summer.
The carrier said it was considering sales promotions to encourage Internet use when the booking facility goes live on www.ual.com.
Bishop said: “On-line bookings will be available soon, but agents will stay our primary focus of distribution and we believe the Internet will save agency time. Most people will use our site for information before going to agents.”
United takes just 4% of worldwide bookings on its Web site, which are almost all from US-based travellers.
Bishop said the carrier forecasts the percentage to rise to 20% by 2003. This contrasts greatly to British Airways’ prediction of 50% in three years.
United urged agents to use the Internet for their own bookings and to put them in a position to collect service fees.
Bishop warned retailers who ignored the Web did so at their peril and will lose out in sales.
She said US agents, who regularly use the Web to make United bookings, had been sceptical of service fees, but now they were the norm.
“There is no doubt agencies will move to a management or service fee, but we do not know how this will impact on commissions,” said Bishop.
United cut basic commission to 7% from 9% last year, but say there aren’t any immediate plans to change this in the light of BA’s move on commission.
Meanwhile, United has started to consult with passengers on changes next year to business and economy seating. New business seats are likely to be installed after United’s first-class product is upgraded by the end of this year.
Bishop did not rule out similar business-class seats to BA’s bed product. In economy, United is planning to offer its domestic Economy Plus product next year on transatlantic flights which gives more room to customers in front rows.
Bishop conceded American Airlines’ move to greater pitch in its entire economy cabin may change United’s plans.