13 Oct 2000MACAU - Air Macau has cut travel agent commissions from
nine percent to seven percent in China, effective October
1, and is considering implementing the cut in the Taiwan
market, said market development manager Dominic Ching.
It first cut commissions in its home market on June
15.
While Ching said that cutting distribution costs was a
longterm strategy of Air Macau, he noted, "We have to be
careful. Travel agents account for more than 90 percent of
our revenues."
While other niche carriers in Europe and the US have
made good use of the Internet to go direct and bypass
travel agents, Ching said Air Macau was a long way from a
major Internet play.
"In the US, there is a lot of domestic travel. Asia is
different in the way the market is structured. We are very
conservative about getting into e-commerce."