This topic contains a solution. Click here to go to the answer

Author Question: What prompted the airlines to alter the travel agent commission structure? What will be an ideal ... (Read 33 times)

123654777

  • Hero Member
  • *****
  • Posts: 585

Question 1

What are life cycles? Explain the various phases.
 
  What will be an ideal response?

Question 2

What prompted the airlines to alter the travel agent commission structure?
 
  What will be an ideal response?



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

steff9894

  • Sr. Member
  • ****
  • Posts: 337

Answer 1

Life cycles in business are not unlike what people go through in the course of their lives. The phases include development (start-up), growth (development), maturity (prosperity and stability), and decline (intense competition, market saturation, and higher unit costs).

Answer 2

During the mid-1990s, distribution expenses (not jet fuel costs) were second to labor salaries and benefits as the leading operating expense for airlines. Distribution expenses include the costs of selling the product through third parties like travel agencies. In February 1995, Delta initiated a 50 cap per domestic ticket. Almost all of the domestic air carriers subsequently matched the move. Over the next seven years, the airlines continued to cut commissions on domestic tickets until they were totally eliminated in March 2002. Commissions continued to be paid on international airlines tickets and other suppliers also have maintained a commission structure, albeit at a reduced level making life difficult for small and medium travel agencies.



123654777

  • Hero Member
  • *****
  • Posts: 585
Both answers were spot on, thank you once again




 

Did you know?

Human kidneys will clean about 1 million gallons of blood in an average lifetime.

Did you know?

Automated pill dispensing systems have alarms to alert patients when the correct dosing time has arrived. Most systems work with many varieties of medications, so patients who are taking a variety of drugs can still be in control of their dose regimen.

Did you know?

Cucumber slices relieve headaches by tightening blood vessels, reducing blood flow to the area, and relieving pressure.

Did you know?

In 2010, opiate painkllers, such as morphine, OxyContin®, and Vicodin®, were tied to almost 60% of drug overdose deaths.

Did you know?

Certain chemicals, after ingestion, can be converted by the body into cyanide. Most of these chemicals have been removed from the market, but some old nail polish remover, solvents, and plastics manufacturing solutions can contain these substances.

For a complete list of videos, visit our video library