Let me tell you a sad story. For over a decade, I had a friend named Jane. Jane was someone I could count on. If I was stuck in a strange city, Jane would find me a way home. If money was tight, but I had to see a customer across country, Jane would find me a cheap way to go. Jane was my ally, my friend, my travel agent.

        Then, one day, Jane was gone.

        Jane realized early that, as a travel agent, her days were numbered. She terminated her business two years ago. This month, more travel agents may die, because four airlines announced they would no longer pay agents commissions for domestic bookings. This is grim news for all entrepreneurs.

        First, this threatens the livelihood of thousands of small businesses. According to Richard Copland, president of the American Society of Travel Agents, there are about 25,000 agencies and 300,000 travel agents, most self-employed. What he didn't say is that the majority are women.

        But even for our own self-interest, the elimination of agent commissions bodes ill, as smaller businesses will feel the effects more than any other segment of the traveling public because travel agents frequently serve as a small company's outsourced travel department, maintaining relations with airlines, finding the best fares and routes, and saving us time and money.

        That's how I used Jane. Not to mention the times I avoided huge airport lines when a flight was canceled, and a call to Jane got me on a different flight.
       

Internet steals clout

        Who killed Jane? Like an Agatha Christie mystery, there are many potential culprits, and no one is entirely innocent. The Internet, changing business practices, but mostly the airlines all hold smoking guns.

        “One of the reasons I got out, the Internet was beginning to be a factor,” said Jane. “Commission rates got worse and worse.”

        But perhaps the fatal blow was she found she had less influence with the airlines on behalf of her clients. Jane used to have special numbers and people to call.

        Now I'm at the mercy of the airlines, and they're not particularly friends of small-business travelers. You can't typically take advantage of the last-minute or weekend fares for leisure travelers, and you don't get the perks or discounts of corporate fliers.

Advice for agents

        So what can travel agents do?

        Become travel “consultants” or outsourced travel departments: Agents can't just charge higher and higher fees per ticket. I won't pay $50 to buy a $150 airline seat. Agents have to find new ways of charging — hourly fees, monthly retainers, or other fees for service.

        Specialize: Find a travel niche that can support extra fees and get commissions for hotel, car, and activity bookings.

        Act together: Independent agents need to work together to negotiate discounts, better service, and decent relationships with the airlines on behalf of their customers.

        Rhonda Abrams is the author of The Successful Business Organizer. For free business tips, write her at 555 Bryant St., No. 180, Palo Alto, CA 94301.

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