Bahamasair has ended its three-week feud with travel agencies over ticket sales commissions, agreeing to double rates on the sale of domestic tickets, while providing additional incentives to boost sales through the agencies.
In an interview with the Bahama Journal on Thursday, Managing Director of the airline, Paul Major said officials reached an agreement Wednesday to pay a four per cent commission on the sale of both international and domestic tickets.
Bahamasair had previously announced that it had reduced commissions from six percent on the sale of both international and domestic tickets to four percent for international and two percent for domestic tickets.
Mr. Major said travel agencies have already started selling Bahamasair tickets again.
ﾓThey are industry partners, and we always felt as if we should have a cooperative relationship with them,ﾒ he said. ﾓItﾴs just that weﾴre trying to reduce costs, and weﾴre still planning to do that, but weﾴre negotiating.
ﾓWe knew it (the dispute) would have been resolved, thereﾴs no question about that, because they provide a high proportion of seats in and out of the Bahamas. They need us and we need them, and Iﾴm sure they appreciate that.ﾒ
Bahamasair has also introduced an incentive override programme that would take into account incremental growth in travel agency ticket sales, when compared to the same quarter of the previous year.
As a result, if agencies experience growth of five percent, Bahamasair would pay an additional or override fee of five percent.
Sales growth of 10 and 15 per cent would be similarly compensated by an additional 10 and 15 per cent in commission fees respectively, and growth of 20 percent would be rewarded with a commission of 20 percent.
ﾓWe always had intentions of implementing the override incentive, and we told the agencies that,ﾒ Mr. Major said. ﾓNow they have something they can live with and we are happy.
ﾓNow they have an opportunity to make more money. Theyﾴve got an incentive to sell more, which is essentially what we want. Weﾴre simply saying that we need them to keep growing their sales.ﾒ
Mr. Major said travel agencies account for 37 percent of ticket sales or $18 to $20 million a year.
He said during the agenciesﾴ boycott there was no decline in ticket sales, and the airline was able to handle the traffic that was coming through its ticket offices and the airport.
Rogan M. Smith, The Bahama Journal
