HTT 303 Midterm: Exam Notes
5 Dec 2016
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Hedna : hotel electronic distribution network association. Canada has more agencies per capita in world because most people are located near hwy 401. Wide spread of agencies because ppl are spread out everywhere. #1 leader in distribution travel products and services. Bring in . 6 billion dollars (us) a year. How do travel agents get paid? contest and incentives (i. e. , for every 5 nights, you get 1 night free) commissions on what they sell * overrides and bonus * Delta stuns the d community with commission capping , cuz they did it with no warning. Reason for capping : because airlines rev for seat, 18% goes to d channel (which was too commission capping much) 2nd goes to labour fee. Largest settlement in 1996 sept: airlines agreed to pay travel agencies 86. 5 million for penalties across usa. Net fare/fee arrangement with airlines wanted markup. Not just airlines, but other industries want to cut distribution cost , ie : hotel services.
