Revisiting WestJet's new Commission Structure

As we know, WestJet has recently adjusted their travel agency commission structure. Following our commentary on March 19, 2015, I would like to make some very clear distinctions on where WestJet has differentiated themselves. 

On October 1, 2015, WestJet is implementing a base commission of four per cent on Flex fares and eight per cent on Plus fares for all domestic and transborder flights for booking and travel on or after October 1, 2015.  ACTA would like to commend WestJet for giving the industry an adjustment period of more than six months for travel agencies to comfortably transition to this new industry standard. 
 
An important distinction to note is that WestJet Vacations did not reduce commission on the air component.  The commission on WestJet Vacations remains unchanged at eight per cent on a true base package price with no surcharges. As well group bookings remain unchanged at five percent; For this, we would like to commend WestJet.

Travel agents play a fundamental role in the industry and they are valued partners of airlines around the world. I encourage you to think creatively on how you approach customers, structure your products and communicate your value proposition to adapt to the industry changes.

If you require any additional information regarding this matter, please contact me by email at dmccaig@acta.ca and I would be happy to offer my assistance.

Sincerely,

David