TRAVEL INDUSTRY Airlines squeeze agents

Six airlines have eliminated commissions for travel agents who sell flight tickets.
By DON SHILLING
VINDICATOR BUSINESS EDITOR
YOUNGSTOWN -- Vicki Stank-ewich didn't believe in charging service fees to customers who bought airline tickets from her travel agency -- until this week.
With six major airlines eliminating commissions they paid to agents, the owner of Howland Tours and Travel said she will have to begin charging for issuing tickets.
"We're not going to work for nothing. I don't think anyone will go to work for nothing," she said.
Stankewich, who doesn't know yet how much her service fees will be, was one of the few remaining travel agents that wasn't already charging fees. The fees have been added over the past couple years locally because airlines have cut commissions several times since 1995.
Pan Atlas Travel, with offices in Youngstown, Boardman and Warren, raised its service fee this week from $15 to $21.50 for a round-trip ticket.
Worth the fee: Chris Chalker, travel consultant for Pan Atlas, said travel agents face the task of convincing customers that they are worth the fee.
Calling an airline won't necessarily get you the best price because airlines are checking only their own flights, she said. By using an Internet service, ticket buyers can't easily make changes to their flights and they have no one to help them with problems, she said.
"We saw that on Sept. 11. We got a lot of calls from people who booked flights on the Internet," she said.
Changing their focus: Travel agents saw the elimination of commissions coming so they have been changing their businesses to rely less on issuing tickets and more on other services.
"You have to focus on where the profit is, and that's cruises and tours," Chalker said.
Pan Atlas has been training agents to have certain specialties, such as the Caribbean or Europe.
Chuck Saulino, co-owner of Allsports Travel Service in Canfield, said his company will increase its focus on providing trips for sports fans.
The company will continue to have a travel division that will support other travelers, however. Providing good service will be the key to success without commissions, he said.
"It's all about building rapport with clients and developing trust," he said.
Its service fee of $25 for a round-trip ticket is under review.
Nationwide, a number of travel agencies have closed each time airlines have reduced commissions, Saulino said. He thinks more companies will merge to reduce their combined overhead costs.
Julie Costas of Carlson Wagonlit Travel in Boardman said she expected service fees to increase there because of the loss of airline commissions. A meeting on the fees was being held today.
The company also is watching other travel companies, she said. Some cruise lines have reduced commissions, while some have not. The agency still is receiving commissions for charters it organizes.
History: Airlines used to pay travel agents a 10 percent commission on tickets. The commissions were gradually reduced to a maximum of $20 for each round-trip ticket.
Even that amount is now eliminated for the most part. Delta Air Lines started the move to no commissions Friday, and US Airways, United Airlines, American Airlines, Continental Airlines and Northwest Airlines followed this week.
shilling@vindy.com