Redefining the relationships — The future of travel agencies and the global agency contract in a changing distribution system

The reduction of commissions paid by airlines and the competition provided by the internet are presenting a challenging and uncertain operating environment to travel agencies. This paper looks at the shortcomings of the current passenger agency sales agreement. It questions whether travel agencies need a new IATA agreement, and proposes that travel agencies need to look hard at the root causes of the current problems facing the industry. It proposes that travel agents need to redefine their relationship with their suppliers and be proactive rather than reactive to industry changes.