NEW YORK -- The slashing of travel agency commissions is a "good
thing" and something that has nevertheless left a travel agency
business that is "hale and hearty" because the public is willing to
pay for services.
Such was the assessment of American Airlines' retired chairman
Bob Crandall in remarks made during a speech March 20 at a Wings
Club lunch here.
He said that, historically, as far as he knew, the airline
industry was the only industry that paid all distribution costs,
adding that the carriers made matters worse by raising those costs
in order to be competitive.
He said agents are surviving, in any case, because they have
"recognized that they provide a real service" and have been able to
turn to the public for recompense.
Crandall said he "recognized" that the passenger always paid the
bill, "but now it is not on the airlines' P&L statement."