Jamie Biesiada
WASHINGTON — ASTA is working on language for preferred-partner contracts that would carry penalties for late commission payments, part of its mission to get travel advisors paid on time, ASTA CEO Zane Kerby said.
Kerby spoke during the Society's Travel Industry Forecast last week at the National Press Club here.
"There is already an uncomfortably long lag between when our members recommend hotels and when they are paid a modest commission," he said. "That modest commission is further diminished by the current structure in place delivering it. ASTA members confirm that collecting hotel commissions is a big problem."
It can take months to get paid, Kerby said, time spent "navigating a Byzantine labyrinth of documentation and requests."
Earlier this month, ASTA launched an online tool for advisors to report delinquent commission payments. It will soon publish a watchlist of hotels who members report are problematic with payments.
"We are tired of excuses," Kerby said. "It's time to put slow and no-pay hoteliers on notice."
ASTA has also been in contact with host agencies and the consortia, who are just as interested in getting advisors paid promptly. The Society has begun offering language to put into contracts that suggests penalties for late commission payments, he said to applause.
The topic came up in a panel after Kerby spoke. Here is how two agencies are dealing with the issue:
Tiffany Hines, CEO of Global Escapes in Athens, Ga., said her agency simply chooses not to do business with companies who don't pay commissions in a timely manner.
Joshua Harrell, chief revenue officer of WorldVia Travel Network, said the network's thousands of advisors can book with whoever they want. So, for WorldVia, it's more about making advisors aware that the practice is bad for their businesses and they should choose supplier partners carefully.
"If there is ever an issue with any delayed payments, that is dealt with right away with that supplier, and then it becomes a situation where everyone in our network is aware that's a problem, and you've got to stay away from it," he said.
It's an approach similar to the one ASTA is taking with its watchlist, Harrell added.