Lufthansa has followed the lead of the likes of British Airways and bmi to drop commission to 1%.
The German flag carrier will reduce agency commission from 4% to 1% from 1 January next year.
A spokeswoman for the carrier told TravelMole: “We are constantly looking at ways to reduce distribution costs and given the current state of the market this seemed like the best route to take.
“We have been in discussions with ABTA and our travel agency partners – it has been an ongoing process, and is not a knee-jerk reaction to BA’s announcement.”
When asked whether she thought agents would switch-sell away from Lufthansa as a result of the move, the spokeswoman said: “We are confident that we have a good relationship with agents. 80% of our business is via agents, so it is not a decision that we took lightly.”
Read our previous stories:
19-Sept-2003 Comment by Jeremy Skidmore: Wise up over commission cuts
12-Sept-2003 Commission cuts come thick and fast
08-Sept-2003 Iberia drops to 1%
04-Sept-2003 Newspaper claims BA boycott is imminent
29-Aug-2003 BA to ditch Fresh Approach
