Impact on Consumers and Agents
Individual business owners, such as Sarah Hupalo, owner of Elite Travel in Windsor, pointed out that managing large group events will become more expensive for consumers.
"Realistically the airline is not reducing the fare and the customer now is going to have to pay an agent an additional surcharge to have that group managed.
So the cost really, I mean we're getting less money and the consumer is going to end up paying more especially if they need services of a professional," Hupalo said.
Hupalo explained that agents frequently provide extended late-night emergency assistance when carrier call centers fail to manage passenger inquiries during major crises.
"If they can't manage the number of calls when there's an earthquake, or a hurricane, or a snow storm, or any other issue...
if they can't manage the number of calls and have a 12-hour hold time, or they hang up on you at midnight because the call centre is closed, or whatever it is, the agent is still on that phone until two in the morning to work with the client - so where is the compensation for that?"
she asked.
While acknowledging rising airline labor costs and labor agreements, she argued that essential intermediary support should be valued properly.
"I'm sure there's additional costs now because they've had to increase the pay for some of their pilots and flight attendants, and fair enough.
But we're part of that travel food chain; we support them; we do a lot of the grunt work; and we're essential support to travellers, and it needs to be valued," Hupalo said.
Air Canada spokesperson Peter Fitzpatrick stated that the airline cannot speculate on whether commission rates might rise if fuel prices eventually decrease.
Meanwhile, other North American aviation executives have commented on the likelihood of sustained pricing patterns across the industry.
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"The longer consumers pay these prices and airlines get used to this revenue stream, the more likely it is to stick," said Andrew Nocella, United Airlines Executive Vice President and Chief Commercial Officer.
