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Funjet cuts agent commissions
In a move that goes against recent trends incentivizing agents with higher commissions, Funjet Vacations has cut commission levels for lower-producing agents.
Funjet has cut rates for its bottom-tier agents to between 5% and 8% and for low-volume preferred agencies to between 7% and 10%.
Standard commission levels across the industry are around 10%.
The company said the changes would affect about 2% of Funjet’s business.
Funjet President Mike Going hopes the aggressive move will encourage "some volume commitment" from agents.
"What we’re looking for is to inspire agents to engage with us, pick up the phone, call a salesperson, commit to some volume," Going said.
Funjet’s strategy flies against the current tendency to inspire agents to aggressively sell a product with higher commission levels and cash incentives.
The firm, owned by Milwaukee based Mark Travel, operates the FunjetAgent.com portal for travel partners to keep up to date on sales, promotions, incentives, products and services, and the 500 Club Agency Rewards Program, which rewards its highest performing agents.
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