WESTERN BUREAU:
LOCAL TRAVEL agents are forecasting more closures, downsizing and mergers in the business as the uncertainties facing local travel companies intensify, in the wake of BWIA's decision to slash its commission to agents by one third.
It comes at a time when travel agents are already reeling from a downturn in airline travel due to the impact of the September 11 terrorist attacks in the United States.
Janice Collins, president of the Jamaica Association of Travel Agents (JATA), says while the group understands the move by BWIA, it couldn't have come "at a worse time."
"It means substantial loss in revenue for many local travel agents which have recently increased their promotion of intra-regional travel," the JATA president said.
"In addition, the general poor state of the economy is taking its toll on members of my profession, and there have been a number of closures and mergers of travel agencies, over the last two years. We expect the trend to continue."
Closures and amalgamations, among them the merger of Martin's Travel Service, a veteran in the business, with Trafalgar Travel Limited, saw the sector contract by six or seven firms last year.
The developments have had an impact on JATA whose membership has fallen from 47 in the year 2000 to 35 at present.
Previously, most airlines had reduced their commission to agents by 33.3 per cent in the year 2000, but BWIA has just decided to go that route. BWIA's new commission rates should come into effect on February 15. The agents' commissions will drop from 9 to 6 per cent.
Ms. Saunders is confident, however, that the agencies will adjust and that "over the coming months, the tourist industry will see fewer but stronger agencies."
"We are a resilient group, so the travel agencies which remain will take strategic decisions to stay afloat."
