NEW YORK --
American Express said that, effective Jan. 1, it will require all
independent agencies to pay an annual fee, per location, in order
to access the company's Platinum and Centurion card travel
programs. The three-tier fee structure reportedly starts at $1,000
for the lowest producers and tops out at $7,000 for top producers.
American Express,
which said it needed to share costs of developing and marketing the
exclusive travel programs, will make a formal announcement of
details in December but this week gave a sneak preview to trade
associations and top producers.
Each agency's fee will be
determined by past productivity on the Cruise Privileges and
Destinations Vacations offerings, but the fee will be required to
book into the Fine Hotels & Resorts component, as well. The
fees will not be required to book the air services component of the
Platinum and Centurion card benefits.
American Express
said participating agencies will continue to collect full
commission on the bookings, and it said it will enhance services
with more staff at the services desk, Saturday hours, better
communications of program features and support for commission
collection.
American Express
representatives are exempt from the fees; agencies that participate
in the Travel Agency Partnership program, whereby unaffiliated
retailers refer prospective corporate card customers to the
company, are not exempt.
To contact
the reporter who wrote this article, send e-mail to Nadine Godwin
at [email protected].