The new BA plan

U.S. travel agents might be getting a glimpse of the future -- possibly their future -- in the announcement by British Airways that the carrier will replace the traditional retail commission with fees.

To be sure, BA said there are no plans to eliminate commissions in the U.S., but the reasons offered for making the change in the U.K. sound as downright American as apple pie and Bill Gates:

You think it can't happen here? Think again. Think Southwest Airlines, multi-airline Web site, air rage.

Scheduled to take effect Jan. 1, 2001, the British Airways plan turns the typical fee-for-service formula on its ear in that the "client," in this case BA, not only will pay the tariff but also establish the price.

In the typical travel agent-client relationship, of course, it is the retailer, not the customer, who evaluates the cost of his or her services and sets the appropriate fees.

In any event, British Airways said it will pay retailers a flat amount, as yet undetermined, for making a booking, issuing travel documents and collecting air fares.

It is left to the trade -- or maybe what will be left of the trade when this kind of compensation structure runs its course -- to offer its clients additional services and charge the going rate.

According to British Airways, the chairman of the Guild of British Travel Agents said his group accepts "the basic principles of the new scheme," but we will await further word on that.

For now, you can be sure that BA figures to save a bundle by spending less on U.K. travel agents in fees than it would in commissions. That's the bottom line.

You can bet your capped bottom dollar on it.