BELLEVUE, Wash. -- Travel agencies that are "committed to support"
Classic Custom Vacations will earn the right to book commissionable
packages through its parent Expedia next year.
Expedia for Travel Agents (EFTA), which will be an agents-only
section of Expedia.com, is about to undergo beta testing and is
expected to be released late in the second quarter of 2003,
officials said.
So why would an agency want to book an Expedia package rather
than using the GDS framework or by calling a wholesaler
directly?
Brad Anderson, president of Anderson Travel & Cruises
American Express in San Diego, said the Expedia packages often are
cheaper than travel agent rates and the bookings will increase
volume with existing clients.
"We don't have 100% share from some of our best customers, who tell
us, 'We didn't want to bother you [with certain bookings], so we
booked it on Expedia,' " Anderson said.
"Why wouldn't I want to sell it to my customers?" Anderson said.
"But if it isn't economically feasible, we're not going to do
it."
Ron Letterman, CEO of Expedia subsidiary Classic Custom
Vacations, said he "doesn't anticipate" an EFTA enrollment fee, but
agencies must negotiate an agreement with the wholesaler to sign
up.
Because EFTA will be available exclusively to agents who support
Classic, it could drive agency business Classic's way. Following
Expedia's acquisition of Classic, Carlson Wagonlit and AAA dropped
it as a preferred supplier.
"This is a product designed to support Classic," Letterman said.
"No other wholesaler can offer it to travel agencies."
Still unclear is what it means to be "committed to Classic."
Details are under development, officials said.
Agencies that book Expedia packages on the site will receive 10%
base commissions on the land portion, according to Letterman.
But a spokeswoman for Expedia, which will pay the commissions,
later said the commission percentage has not been finalized.
Letterman said the hotel, ground services and sightseeing
packages will be driven by Expedia's merchant relationship with
some 7,000 hotels.
Agencies will be able to book air with the Classic and
non-Classic packages, but the flights will not be commissionable,
he added.