Amtrak Cuts Travel Agents' Commissions, Increases Tour Incentive
Amtrak has announced that it will reduce its travel agents' commissions to five percent effective this month, and increase its tour incentive to as much as 15 percent, based upon sales performance. In announcing the change, Amtrak explained it is increasing its investments in travel agent support services and in the quality and consistency of its train products, something the agents have been requesting. Although ridership and revenue have been climbing, the proportion of tickets sold through travel agencies has dropped, from 40 percent of sales prior to 1995 to just 29 percent this year. This decline occurred despite Amtrak's decision last year to maintain commissions at 10 percent across the board, two percent higher than the airlines. Also, Amtrak never imposed limits on commissions, as did the airlines in 1995. "We've learned the hard way that commissions are not the key to driving Amtrak product," said the company.