ACTA Says Airline Aid is Great, But Agent Commissions Need Protection

ACTA says agent commissions need to be protected as part of any coming assistance package for Canadian airlines and the aviation industry.

"COVID 19 pandemic caused mass cancellations at an unprecedented rate last spring. Based on consumer feedback, ACTA understands the need to provide refunds on COVID-19 affected bookings," ACTA said in a release.

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“We know this is what the majority of Canadian consumers have asked for, and understand from yesterday’s announcement by Minister Garneau that consumer refunds will be a condition of any government aid,” said Wendy Paradis, President, ACTA.

However, on behalf of Canadian travel agencies and travel agents, ACTA remains opposed to any policy by airlines and other suppliers to recall commissions.

“Travel agencies and travel agents have worked tirelessly on behalf of our mutual customers since last March, when all travel was abruptly halted and thousands of travellers had to find their way home and pursue refunds and compensation,” said Paradis.” Many travel agents have worked throughout the spring and summer trying to mediate these disputes between our mutual customers, and airlines, tour operators and cruise lines.”

Government aid must cover commissions

According to Paradis, ACTA is actively lobbying the federal government to include travel agent commissions as part of any aid package given to the travel industry – either by stipulating that the aid must COVER all commissions and that they must not be recalled --- or by direct compensation to travel agents and travel agencies.

Travel agencies and travel agents have seen revenue drops of over 90% since March 2020. Travel is one of the hardest hit industries and having experienced close to zero income over the past 8 months, travel agents and agencies no longer have the funds to support a recall of commissions by any travel supplier, as they have already used or earmarked these funds to pay wages, rent and other fixed expenses.

“We have been asking the government repeatedly to include travel agencies and travel agents in any aid package for the travel industry,” said Paradis. “We need to make sure the government understands that travel agencies and travel agents are an integral part of the distribution channel for all travel industry suppliers and that decisions to give refunds have a direct impact on these small businesses and independent contractors across Canada.”

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Others in the industry agree.

"This is absolutely essential in my opinion," said agent Lindsay Schile of CM Travel/Vacations for Heroes in Chilliwack, B.C. "So many hard-working agents have been put through the wringer."

"I agree that clients should be refunded but not at out our expense. It would be the straw that broke the camel's back."

“This (an assitance package for airlines, airports and the aerospace industry in Canada) is really good for Canadians, but, once again, the travel professionals who fielded all the calls, changes and guided travellers through the early days of the pandemic will now likely have to refund any commission earned to the airlines,” said Jason Sarracini, managing director of Omega Tours. “There is no direct mention of assistance (in the Garneau release) to the travel professionals that are and will be in such demand as a trusted voice coming out of this period.”

“This is simply not discussed enough and believe me, as I live it day to day, the airlines always come back to travel professionals looking for their support," Sarracini told TravelPulse Canada.

Air Canada President and CEO Calin Rovinescu weighed in on the issue of refunds and Ottawa's offer of assistance.

"At the end of June, we made the difficult decision to indefinitely suspend 30 domestic routes and close eight regional stations and our Network Planning team has identified up to a further 95 domestic, U.S. transborder and international route suspensions and nine Canadian station closures required to preserve liquidity, cut costs and reduce capital expenditures as we prepare for a smaller footprint expected to last several years," he said.
"Given the public statements made by the Honourable Marc Garneau, Canada's Minister of Transport, on November 8, 2020 regarding commencing immediate discussions with major airlines on aviation industry sector-specific support, we are deferring the additional route suspensions and station closures pending the progress of those discussions."