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Travel agent says Air Transat is dropping base fares to as low as $2 to avoid commissions

‘wild west’ in ticket pricing because surcharges aren’t regulated: industry expert.

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Can you fly round-trip from Toronto to Lisbon for as little as $2?

No, but it might seem like you could if it weren't for taxes, fees and other surcharges on an Air Transat booking that CBC Toronto reviewed for next month.

That's because the base fare for the trip is $2, but the carrier's air transportation charge is $600, and other taxes and fees bring the all-inclusive price up to $719.85.

A Greater Toronto Area travel agency flagged the toonie base fare after booking similar round-trip flights to the same destination for clients through Air Transat with a base fare of $3.50 and an all-in price of $723.59.

Jeff Verman, CEO of Plus Travel Group, said he believes airlines are dropping base fares and raising carrier surcharges to avoid paying commissions to travel agents.

"This is a deliberate move to pay us less," Verman said. "[Our] service fee alone does not make us profitable. Commission is what we need to be profitable each transaction."

Unlike many travel agencies, Verman's survived the COVID-19 pandemic. But he said his company is about half the size it was before — and it can't afford to be operating at a loss on bookings, like making a commission of 18 cents on a $3.50 base fare.

Travel agents get commission only on base fares, and with Air Transat, that commission is five per cent.

"It's insulting," he said. "It feels like cheating, that we're being cheated."

Verman said he doesn't see base fares quite this low every day, but he told CBC Toronto that his company regularly encounters base fares under $100. In most of those cases, he said, the vast majority of a consumer's total ticket price is made up of unexplained surcharges from the airline.

Air Transat in line with industry, airline says

CBC Toronto asked Air Transat how its base fares can be so low, what costs are covered by base fares and surcharges for a flight, and whether base fares are dropping to reduce the amount the airline pays in commission to travel agents.

In an emailed statement, a spokesperson didn't answer those questions but said Air Transat is in line with Canadian and global industry practices, including for its fare structure, and that it displays the total price of its flights.

"It is well known that flight prices fluctuate based on supply and demand, and our valued partners and travel industry professionals ... understand the competitive and dynamic nature of pricing we provide," spokesperson Bernard Côté said. "This results in the best value and highest quality experience for our mutual customers."

But a travel industry expert said travel agencies "are getting squeezed" on base fare commissions because there are no regulations around what costs can be considered a surcharge, and airlines would prefer to issue tickets themselves.

• 'More work for no pay': Travel agents say they're in trouble after slew of trip cancellations

"It's the Wild West when it comes to the surcharges," said John Gradek, a faculty lecturer and co-ordinator of the aviation management program at McGill University in Montreal.

"Surcharges are very much a tool that they're using to basically drive competitive behaviour, but also driving profitability on the route. [Airlines] would rather increase the surcharges rather than increase the base fare."

GTA travel agent says he feels 'cheated' by Air Transat's lowered base fares

No financial impact on consumers: expert.

Despite having an impact on commissions, Gradek said the shift in pricing from the base fare to surcharges doesn't change much for consumers because the Canadian Transportation Agency has required carriers to provide all-inclusive ticket prices since 2012.

"The bottom line is that you tell a customer what he or she's going to pay, and then the government says I don't really care how it's split up after that," he said.

But Verman said it should still matter how fares are split. "It's basically saying to consumers that you're flying for free, except for the taxes and surcharges etcetera," he said. "No one believes $3.50 is what the actual fare should be."

Verman has filed a complaint with the federal Competition Bureau over what he considers misleading pricing. The bureau acknowledged his report.

When it comes to commissions, Verman and another travel agency owner believe the issue could be partially resolved with a minimum commission fee per booking for travel agencies.

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"If we're going to issue a ticket for the airline, we should be compensated for issuing that ticket," said Rocky Racco, owner of TTI Travel in Toronto.

Gradek said he thinks commissions are headed in the opposite direction.

"[Airlines] don't want to pay commission ... they don't want to pay incentives. They don't want to do it," he said. "They would much rather you booked directly with them."

ABOUT THE AUTHOR

Reporter, CBC Toronto

Nicole Brockbank is a reporter for CBC Toronto's Enterprise Unit. Fuelled by coffee, she digs up, researches and writes original investigative and feature stories. [email protected]

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35 Travel Agent Discounts You Should Know

There’s a rumor going around that travel agents can get access to free or discounted travel. It’s true! While some of your favorite, comped travel experiences are offered only periodically by vendors, there are many standard discounts available to travel agents everywhere. Here are over 35+ travel agent discounts our Centrav staff members have discovered and enjoyed in the past.

Please note, discount availability and requirements are subject to change. Please reconfirm the requirements of all TA rates prior to booking. If you are unsure whether a travel agent discount is still available, be sure to contact the vendor directly for more information!

Hotel and Resort Discounts for Travel Agents

1. accor hotels.

Travel agents can receive up to 30% discount exclusive to travel professionals.

Click here to book

2. Affinia Hotels

Use promo code TAPROM to receive travel agent room rate.

3. AM Resorts

Hit “register now” to begin the process.

4. Aqua-Aston

Book exclusive FAM rates at Aqua-Aston properties using provided promo codes. Valid travel agent ID must be presented at check-in.

5. Best Western

Travel agents can register to complete a short, certification process to access these discounts.

Click here to register for certification

6. Choice Hotels

Travel agents will need to provide IATA, ARC, CLIA, or TRUE number and the first letter of their agency.

7. Country Inn & Suites

Under More Options, change the drop-down to Promotional Code and insert “TVLAGENT”. This will reveal any TA rates on the landing page.  You will need to present your IATA card at the front desk.

8. Couples Resorts

Hit “register now” to get started.

You will need to complete a series of online courses regarding Disney’s products. This will give you access to travel agent rates for Disney properties and cruises.

10. Dusit Hotels

To access this discount, click “corporate & promotion code” under special codes. Enter: promoindust

11. Hard Rock Hotels

12. higgins hotel, new orleans.

The Higgins Hotel in New Orleans, adjacent to the National World War II museum, offers travel agents anywhere between 20-50% off the prevailing room rate. Reserve your TA rate online and be prepared to show a valid travel agent ID at check-in.

Click here to reserve your TA rate

13. Hilton Hotels

Sign up to complete Hilton’s agent courses. You will need to present an IATA card at check-in for any agent rates.

You must complete a registration process and present an IATA card at check-in.

15. Majestic Resorts

Email [email protected]  and be prepared to email copy of IATA card.

Click here for resort info

16. Marriott

Complete a series of online courses regarding Marriott’s brands and properties with additional lessons each year to maintain certification. You will need to present your IATA card at check-in.

17. Melia Resorts

Click “New Loyalty Programme” to register your agency. Once registered, receive 25% off personal bookings.

Click here to register your agency

Omni Hotels & Resorts offers up to 70% with an IATA card.

Click here for booking info

19. Outrigger Hotels

Hit “sign up” under Agent Sign In to register for Outrigger training courses.

20. Radisson

Use code “TVLAGENT” to search available discounts on your preferred hotel brand website. If no discounts appear, call the hotel directly to ask for travel agent rate availability.

Click here for more info

You will need to complete a series of training modules to access FAM rates to the Sandos hotels and resorts.

22. Universal Studios

Create an account at the link below for access to discounts and day passes. Rates vary by hotel.

Click here to register

23. Westgate Resorts

Travel agent education rate gets you up to 65% discount at select properties. A valid Travel Agency ID must be presented at check-in to receive discount.

Click here to view discounts

24. World Hotel Collection

Under “Travel Agent Rates” click “Book Now.” You will need to present a valid Travel Agent ID upon check-in.

Ground Transportation Discounts for Travel Agents

Alamo’s travel agent portal provides helpful information and discounts.

Amtrak offers 75% off full one-way rail fares for eligible agents.

Travel agents can enjoy a 20% discount through their ASTA, IATA, or CLIA card.

28. Europcar

Save 25% off as a travel industry professional.

29. EZ Air Park – MSP

Present a valid IATA card to receive a 20% discount.

30. Park ‘n Fly

Show IATA at the exit to get a 20% discount.

Entertainment Discounts for Travel Agents

31. city sightseeing new york.

Obtain promo code through your IATA account for a 20% off discount.

Log in to your account for more info

32. Busch Gardens

Show a valid IATA card and photo ID at admissions gate to receive 50% off for you and a guest.

Click here for Busch Gardens info

33. Grand Canyon & Sedona Tour

Receive 25% off this day tour with an IATA card.

34. Kennedy Space Center

Go to “will call” window at the visitor complex. Present IATA card to receive 50% discount for daily admission for an agent and 2 guests.

Click here for Kennedy Space Center info

35. Sea World

Show a valid IATA card and photo ID at the admissions gate to receive 50% off for you and a guest.

Click here for Sea World info

*Centrav cannot guarantee availability or access to discounts mentioned in this post.

  Do you have an IATA card? Find out if you are eligible .

Shawna Levet

Shawna is passionate about helping travel agents grow their business and expand their knowledge as travel experts. She has been in the travel industry since 2011, helping agents and travelers alike find the best negotiated airfare and travel coverage to meet their needs.

27 comments

Cancel reply.

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Thank you Shawna for this TA information. I just now found it for the first time!

You are welcome, Pam!

This is great information Shawna, thanks?!

You’re very welcome, Melinda!

Outstanding!! wish I had seen this sooner. I just rented a car for 3 weeks from Alamo in Ft Lauderdale. I showed the counter attendant my CLIA card and asked for a discount, which I did not get.

Why wouldn’t they accept it? Was it because it wasn’t an IATAN card? I have a CLIA card as well. Marriot Hotel Excellence allows a CLIA card for their FAMtastic rates

This is great information and it is very helpful. Thank you for all your hard work. I would appreciate if you could send me an email have a few questions hoping you can help me with. Thanks in advance.

Do you know if Radisson or other hotels accept CLIA card, if we don’t yet have an IATAN card?

Hi Samantha! Per their current online registration form, they accept IATA/ARC/TIDS/CLIA/TRUE.

Thank you for this update!

Shawna, I dont sell enough to qualify for an IATA card myself. Can I use the agency’s number instead or does it have to be person specific to register for these discounts? Thanks so much

Hi Joan! Thank you for your question! These discounts typically require the agent to show their personal IATA card at the location.

i just called Sea World in San Antonio and they did not know anything about the 50% off. Do you konw if it is park or city specific? I have an IATA card.

Thanks. Tim

Our team members that have used this discount in the past simply showed their IATA card at the gate. We’ll look into this to see if the deal is no longer being offered!

**Centrav cannot guarantee availability or access to discounts mentioned in this post.

Thank you! I love the Centrav posts!

Thank you, Nanci!

Thank you for the wonderful post.

Do you happen to know if I can apply for an IATAN card even if I do not work for a travel company?

Thank you, Saurabh

Hi Saurabh,

Thank you for your comment! In order to be eligible for an IATA/IATAN card, an agent must work for an IATA-accredited travel agency.

Check out this post for more info: https://resources.centrav.com/get-iata-card/

Thanks very much

Thank you so much for this!

You are welcome!

Hi Shawna, I am an admin for a nationally touring music band. I am interested in learning how to get travel agent discounts on mostly flights and hotel for the band. Do I need to become a travel agent for that? If you could lead me in the right direction I would appreciate it.

Hi Cyndee! We can send you more detailed information shortly!

Thank you for this information.

You’re welcome, Marilyn!

Hello, thank you for this guide. Do you know if travel agents are able to get discounts with baggage for flights ?

I am not aware of travel agent discounts for luggage, however, some private airfares offer extra luggage! This is totally dependent on the airline, routing, etc.

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Rostov is a great city to explore on foot and also has an efficient bus service. Stroll along Pushkin Street, an ornate leafy boulevard lined with cafés and restaurants, stopping to admire the iconic wrought-iron globes which depict scenes from Pushkin’s most famous works, or spend a lively afternoon hitting the amusement park rides and ping-pong tables at scenic October Revolution Park. As night falls, wander along the riverside Embankment before taking in a spectacular show at the Rostov State Opera and Ballet.

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Like most city destinations, Rostov-on-Don boasts an eclectic culinary scene ranging from local delicacies to international flavours. Try expertly prepared Russian and Ukrainian fare at Smetana and fresh grilled fish at Ryba Taverna. Or for a wider variety of cuisines, sample Bavarian classics at German brewhouse Schneider Weisse Brauhaus and juicy speciality burgers at Shtefan Burger.

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