Garuda cuts commission

Garuda cuts commission

GARUDA Indonesia has become the latest carrier to stick the knife into travel agent remuneration, last week confirming it was reducing commission by more than a third.

The change is effective for all IATA/BSP agents located in Australia and New Zealand, reducing base commission from the previous 5% to 3% for tickets issued on GA (126) paper.

Garuda noted that agent commission was only payable for travel originating in Australia or New Zealand, with any tickets issued locally for points of origin in other countries defaulting to 0% commission.

The change is effective from 01 Feb, with the carrier’s reduction in agent pay the latest in a series of hits to the industry including cuts by Jetstar (TD yesterday) as well as Virgin Australia’s new $250 ADM threat for consultants who incorrectly apply the carrier’s Future Flight Credits (TD 11 Jan).

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Source: traveldaily