ARTA Canada Comments on Commission Changes

Kudos Go Again to Air Canada for Further Improvements
to the Agency Remuneration Landscape

Toronto, 10 June 2009: ARTA Canada wishes to comment on the revised commission program announced by WestJet and ACTA yesterday and the further increased commission announced by Air Canada. First and foremost, ARTA Canada has endeavored to remain as neutral as possible when dealing with Canada's two major airlines. Our members have their own specific commercial reasons to support one or both carriers. ARTA Canada's policy is to encourage and applaud any advancement or improvements in the relationship between travel agents and all travel suppliers, including airlines.

"We have learned from the past that taking a supplier publicly to task on remuneration issues is a no-win situation. Instead, we try to work discretely behind the scenes to influence policy and reconsideration when necessary. We chose not to criticize WestJet's economic justification for lowering commissions to 4%, but rather attempted to reach out to WestJet privately to discuss the matter", said ARTA Canada President Bruce Bishins, CTC.

ARTA Canada revealed today that when it was clear that WestJet chose neither to reverse, nor to discuss its policy, Bishins contacted Air Canada officials in a plea to persuade the carrier to resist matching WestJet's commission reduction and to leverage Air Canada's escalating commitment to renewing its relationship with the travel agency community.

Not only did Air Canada continue its commission program status quo, but it introduced the first-ever remuneration of its Tango product, the most widely sold fare product by agents in Canada. Add to that the agency incentives involving Aeroplan, and Air Canada more than proved its willingness to strengthen its partnership with travel agents.

Air Canada's additional commission increase yesterday on Tango fares to 7% is a further indication that not only does Air Canada truly value the agency distribution system, it intends to keep the airline and agents operating in tandem in this ever-changing, competitive environment.

While ARTA Canada stated that ACTA might be commended for whatever role it played in encouraging a rethinking of WestJet's original plan to cut commissions by some 56%, it is more likely that WestJet's reconsideration to only cut commissions by more than 22% is a direct and tactical response to Air Canada's decision to increase agency commissions rather than reduce them.

The end result as it stands today is WestJet is still down 2% commission and Air Canada is up 7% commission. The facts speak for themselves. 

As the remuneration of Canadian travel agents by Canada's two major airlines seems to be an ongoing, still-developing matter, ARTA Canada will continue to reach out and support any carrier which offers improved commission programs for its members. To date, that carrier is clearly Air Canada, and ARTA Canada will continue its efforts to influence Air Canada to further enhance its relationship with travel agencies.

"Air Canada has earned our support, and I will challenge our membership to continually prove that such support is more than just words", added Bishins.

About ARTA Canada 

ARTA Canada is the largest non-profit federally incorporated professional association of travel retailers in Canada, the members of which consist exclusively of travel agencies and travel agents. In addition to advocating fair and equitable treatment of travel consumers, ARTA Canada represents the commercial and strategic interests of its member travel agencies and travel agents in a variety of national and provincial domains including regulatory and legislative matters, automation, technology, sales and marketing, and distribution.

ARTA Canada is the strategic partner in Canada of the U.S.-based Association of Retail Travel Agents (ARTA). ARTA Canada is the Canadian member of UFTAA, the United Federation of Travel Agents' Associations. To join ARTA Canada, complete details and online membership application and secure payment are available on the ARTA Canada web site at www.artacanada.ca/join.


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