European Stars and Stripes (Newspaper) - August 28, 1978, Darmstadt, Hesse Page 20 the stars and stripes monday August 2b, 1978 Ait Boom a bust for travel a errs i he proliferation of Cut rate air fares that has set off a Boom in air travel and raised air line revenues ironically has brought grief to the nation s travel agents. A total disaster says Richard Epping. Presi Dent of the Northern California chapter of the american society of travel agents ast echoing a View often expressed in the Industry. Lower fares mean Tower commissions the agents major source of Revenue. And although expanded volume b partly offsetting the lower commissions and the in creasing costs of servicing the bargain seeking traveler agencies say they Are reaching Little beyond the breakeven Point. But agencies Are generally reluctant to Dis cuss precise Revenue and profit agents complain that they encounter tremendous and costly delays when seeking information fro the airlines. Richard Ramaglia executive vice president Hasta. Says delays of 20 minutes on a Call Are not in at a Board of directors meeting in Dublin in june the society said it was appalled at the terribly inadequate capacity of the Telephone reservations facilities which the airlines now j1the association which represents about 75 percent of the United slates travel Industry including More than 13,- too agencies plus providers of travel services called for the immediate upgrading of these facilities. The a a fans Are complicated and increasing i d Belen Are seeking a Tate Ca Aramio of them just when travel a fetus . Altoe generally pay agents commissions of 7 to 10. Ent depending on travel variables. For example a no frills flight Between new York and Miami which sell for $55, generates about 4 in commissions. As the Price of a plane ticket declines so does the Cook inc. One of the largest travel agencies commission payments to travel agents in Mif cons Ridou not with 900 offices throughout 148 countries including 70 inthe United states reported slightly higher profits Tor the first half of this David Loretto president and chief executive offi cer of Cook s North american operations said his agent were putting in 20 percent More time this summer than last explaining fares which he said is highly counter productive to Cook agencies will switch this fall to a totally autom ated reservation system under which reservations Are made and tickets Are written by computers to eliminate Telephone Calls for bookings. This system which Only the largest agencies can afford is imperative he said to remain in business. The popularity of Cut rate fares is changing the operating style of Small Independent travel agents. Nancy Miner a travel agent in the Denver area said she was losing Money on the new fares. Now she is heavily promoting package Tours and cruises which she added ten themselves to flexibility and thus profits while discouraging people who seek Only to Book flights through he Agency. One phone Call by an agent to a cruise line or package tour operator can arrange a costly and often complicated vacation that pays the agent substantial commission. She even withdrew an and in the yellow pages he Agency has always run that solicited commercial accounts which is a venture that Only writes plane new York. Samuel Tappis who operates a whole Sale tour Agency called uni Tours agreed with the sense Nat strategy. Because family vacation Tours usually Call for multiple spot stops the Cut rate fares with their restrictions cannot be used. He Sells mostly these and Complete tour packages so the effect of the fare Dis counts on his Agency has been spotty Tappis said. Similarly travel agencies that Cater mainly to the corporate traveler have not yet been affected by the cheaper air fares but As they readily agree they an t a representative of Emerson travel to new that her Agency where corporate Ravden i about 70 percent of the business was Dettlof queries from the corporations that want to people qualify for , they do not because Disetti Advance booking. So far the agitate accounts Are avoiding in the Emerson agent said has reached tons for the Industry. Steven Weydt director of sates it Rathe largest chata of agencies la the there is no Money to be made to these Days it has become i tee m a. Price Competition is new for the once airline Industry. For 38 years the 0 Board cab kept air fares uniform Een to to Elias bathroom witty locked for is Days. The dog looks fat. Hoad in application for College in the Slovey shoes that make you jump higher and basketball potato lust went up to bust so hush Little baby. Don t you cry c flt Devil
