Some global travel management companies (TMCs) have started surcharging Qantas bookings processed in Australia following an airline decision to reduce commission payments to TMCs, according to a report from Europe.
BTN Europe reports that BCD Travel, a large business travel management company headquartered in Utrecht with regional headquarters in Atlanta, London and Singapore, will begin levying a 3% surcharge “on certain airfares with an Australia point of sale” next week.
The publication said it understood that the surcharge, starting from 6 March 2023, would apply only to bookings with Qantas.
American Express Global Business Travel implemented a week or two ago (from 20 February 2023) a similar 3% surcharge on Qantas bookings processed in Australia, BTN Europe stated.
It quoted a BCD senior executive saying BCD was no longer able to absorb the financial shortfall caused by payment cuts by “some airlines”.
The surcharge will not apply to all airlines, only those who have cut levels of support to TMCs.
Qantas gave plenty of notice that it would update its international commission structure for international flights from 1 July 2022, cutting commissions paid to travel agents for all Qantas international fares ticketed in Australia (excluding trans-Tasman) from 5% to 1%.
The Australian carrier said it was the first time it had adjusted commission on international fares in more than 15 years and the move was part of its three-year Covid recovery plan.
“The changes form part of the work underway right across the Qantas Group to reduce costs by $1 billion each year.”
Qantas said it expected the change would likely accelerate the growing industry trend towards a “fee for service” model that had already taken place in many markets overseas and among several agency chains in Australia.
Qantas is by no means the only airline to have taken this course. As noted in the BTN Europe report, which can be accessed online, a number of other big international carriers have done likewise.
Written by: Peter Needham
