A new revenue model for travel intermediaries in South Africa: The negotiated approach

Abstract

The revenue earned from airline sales made up the major source of income for the travel agent. With the deregulation of airlines, changes in technology, particularly the Internet and parallel changes in consumer demands a new tourism distribution system has emerged. The cost-advantage to airlines of disintermediating the travel intermediary, together with the exponential growth in online travel sales throughout the world, has provided airlines with a platform from which to begin restructuring the traditional revenue-base of travel intermediaries. In contrast to countries such as the USA, Canada, the UK and Europe where airlines made unilateral decisions on cutting agent commissions, the national carrier, South African Airways, and a representative body of travel agents has taken a negotiation approach. This has resulted in consensus on possible new remuneration models for travel intermediaries based on a process of research and negotiation.