SWISSAIR is to follow the industry trend to cut agents’ commission from 9% to 7% by the end of the summer.
The carrier’s executive vice-president sales and marketing Lee Shave said paying agents the lower rate of 7% is fast becoming the industry norm.
British Airways became the first airline to cut commission from 9% to 7% on January 1 1998. Other airlines including KLM, SAS, Lufthansa and Alitalia have since followed suit. Shave told Travel Weekly the move was inevitable. “We have been very reticent about cutting commissions, but it is the way the industry is going. Our policy is to follow the market of the home carrier – we are just simply not strong enough to lead.
“We are very conscious this is unpopular with agents, but in the end they have to find other ways to make up the shortfall.”