Orbitz starting to pay travel agent commissions
In a move blurring the line between on-line travel providers and brick-and-mortar travel agencies, Orbitz announced it would start paying commissions to agents for hotel reservations and packages.
Orbitz said the first 500 travel agents who sign up and make their first booking on www.orbitzforagents.com by March 31 will earn higher commissions on hotel and travel packages through March 31, 2011, according to Reuters.
Commission rates include 10 percent for hotel reservations and 4 percent for travel package bookings.
An Orbitz spokesman said the ground-breaking program was meant to stimulate bookings on its site from customers who insist on using a live agent.
“By pricing the airline ticket and hotel room as a package, Orbitz for Agents is able to give customers access to highly discounted rates on airline tickets, hotel rooms and car rentals that airlines, hotels and car rental companies would not allow us to offer for booking separately,” says Orbitz.
"Orbitz for Agents is an easy to use solution for travel agents to book hotels and customized travel packages while earning extremely competitive commissions," said Ronnie Gurion, President, Orbitz Worldwide Distribution. "Orbitz for Agents also gives travel agents the ability to set and charge service fees on a transaction by transaction basis."
The presence of a live travel agent also could bolster larger bookings — 10 hotel rooms or more — that currently pose a challenge for the technology of most online agents, said Reuters.
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