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AAA Questions Travel Agent Commission Reduction

19 September 1997

AAA Questions Travel Agent Commission Reduction

    ORLANDO, Fla., Sept. 19 -- AAA today expressed concern with
United Airlines' move to lower travel agent commissions and questioned the
timing of United's announcement in light of record airline industry profits.
    "In this period of all-time record airline traffic and profit, we would
expect United to offer lower ticket prices to our members and the traveling
public," said Mark Brown, executive vice president, AAA Association and Club
Services.  "Travel agents provide an invaluable service to the traveling
public and deserve fair compensation."
    Airline industry profits reached $2.8 billion last year.  That number
should significantly increase in 1997, Brown added.
    United Airlines announced it has cut commissions to travel agents from 10
percent of the ticket fare to 8 percent.
    AAA has offered to work with airlines to find a better way to reduce their
distribution costs in a manner that does not adversely impact travelers or
travel agents.
    With total annual sales of more than $2.6 billion, AAA has one of the
nation's largest travel agency operations.
    AAA is a not-for-profit federation of 97 motor clubs with more than 1,000
offices providing 40 million members in the U.S. and Canada with travel,
insurance, financial and auto-related services.

SOURCE  American Automobile Association