What prompted the airlines to alter the travel agent commission ...

[123654777]

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?

[steff9894]

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]

Both answers were spot on, thank you once again

[steff9894]

Great! Please up vote