Commission cap

Friday, Oct. 8, 1999 | 3:09 a.m.

Here is a look at recent actions to limit commissions to travel agents:

February 1995: Delta Airlines starts a move among major U.S. airlines to limit the amount of commission it pays travel agents. The commission remains at 10 percent, but with a maximum payment of $50 for any domestic ticket exceeding $500.

September 1997: United Airlines cuts the commission rate for domestic tickets to 8 percent from 10 percent, with a $50 cap for round-trip fares. Other airlines quickly match the move. International commissions also fall to 8 percent from 10 percent, with no cap on payments.

March 1998: American Airlines reduces its payment for an online transaction from $15 to $10.

November 1998: The major airlines announce they are reducing commissions on all international flights to 8 percent and capping the payment at $100 per round trip. Delta announces it will pay only 5 percent up to a maximum of $10 for a booking over the Internet.

Oct. 7, 1999: United announces it will cut the commission on domestic tickets to 5 percent, with a cap of $50 for round-trip travel. For international tickets, United says it will pay a 5 percent commission, up to a maximum of $100 per round trip.

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