President's Podium: AC's New Performance Based Incentive Program

According to Air Canada the 7% paid out at source on Tango fares has yielded negative returns and after monitoring results for almost 12 months it became clear that the carrier needed to refocus its incentive programs to support higher yields and better margins.

Air Canada made the announcement that they decided to redistribute the way dollars are paid out based on agency performance. They are going to make us work a little harder for it. If you have been selling A LOT of Air Canada Tango fares online then you need to rethink how you are selling Air Canada before April 1st.

To summarize, this new incentive model means agencies who make the bookings through a GDS will see their productivity go up. We are discouraged to learn that those agents who deal with a large percentage of customers whose focus are Tango bookings will have to come up with a plan to up sell and if they don't, will see a drop in their agent revenue from Air Canada.

Do I think the agency community will come through this with resilience? Of course I do. If you sell a lot of AC, take advantage of the GDS earning opportunities. The GDS component is a good thing for the Travel Agent Industry. It shows that the airline is invested in the GDS to drive bookings and that the GDS very much has a future in travel. When using a GDS remember to always refine your search to ask for "highest commission", and for the love of our professionalism continue to charge service fees. We are worth it!

If there is something you want to share with me email dmccaig@acta.ca. I will be sure you are heard. The bottom line is that the survival of travel agents will not come from relying on others for our success, but from the great minds that drive the agencies. ACTA members will continue to drive on! It's a fact that more and more consumers understand the value of the travel agent and are willing to pay more for it. A travel agent is the greatest travel resource. No one else can offer the same expert advice, personal attention, peace of mind, convenience, time savings and trust like we can...Without a Travel Agent...You're on your own...

Sincerely,