Amtrak: Service Fees Not Justified on Train Tickets

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WASHINGTON -- Amtrak said it is concerned that the travel agent community's steady shift to charge service fees for all transactions is forcing consumers to pay more than necessary for train tickets.

"We think since we've supported agents by maintaining the 10% commission, they shouldn't be charging [service fees] for Amtrak," Kathleen Gordon, Amtrak's assistant vice president of sales said. Travel agents can earn up to 12% commissions on Amtrak vacation packages.

Gordon said her concern was heightened after a recent meeting with Amtrak's computerized reservations systems advisory council, made up of 12 agents from around the country. "Virtually every agent on the council was charging fees for everything," Gordon said.

Gordon said she understands the need of agents to charge for airline tickets to compensate for the commission cuts, but she contended that tacking a service fee on to a fully commissionable Amtrak sale "unfairly discourages our customers [from choosing] one of our distribution outlets."

Nevertheless, Amtrak intends to capitalize on the airline commission cuts by making train tickets easier to sell. It is developing a front-end program for agents' computerized reservations systems and new educational training to help agents become sales experts in rail products.

"The reservation system will incorporate a low-fare finder, which agents do not have available to them today," Gordon said. "It would automatically price the lowest fare if agents ask for it."

The front-end system also will allow agents to use their regular CRS commands to access information, freeing them from learning the nuances of booking over Amtrak's system.

"Many agents have difficulty selling Amtrak on the [CRS] systems," Gordon explained. "They have difficulty with the interactions, our fare codes. The beauty of [the new system] is agents will be able to use familiar commands. Our goal is to make it as intuitive as possible so that agents can use the processes they already use."

Agents also will have the option of making bookings in a fill-in-the-blanks, formatted, "guided" mode, or in an expert mode using CRS commands. The system will enable agents to switch back and forth between modes. "If we do this right, even new agents won't feel uncomfortable about selling Amtrak," Gordon said.

The system, which could be in operation by summer, largely is an outgrowth of Amtrak's Web site. The site enables consumers to access train information and make limited purchases of low-priced tickets, generating some $600,000 a month in sales that Amtrak believes agents would prefer not to bother with. The average ticket sold on the site is $145.

"We would love to put [the agent system] on the Internet," Gordon said, "but the Internet is too slow for travel agents, so we decided against it."

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Railway Sets Educational Initiatives for Retailers

WASHINGTON -- Amtrak's new educational programs for agents will include distributing "The Amtrak Experience," a Windows-based CD-ROM detailing routes, accommodations and services.

In addition, according to Kathleen Gordon, assistant vice president of sales, the railway also has been in contact with the Institute of Certified Travel Agents in an effort to develop a correspondence training course designed to help travel agents become Amtrak specialists. -- M.M.

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